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By Henry Hazlitt

Capitalist creation, no longer executive courses, has been the actual conqueror of poverty.

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So far from wages failing to keep pace with increases in living costs, real wages rose 108 percent in this thirty-year period. Was the worker getting his "fair share," however, in the general increase in production—or was he getting a smaller share compared with, say, the owners of industry? Let us begin by looking at the sources of personal income. 5 44 billion, or 71 percent, was in wages and salaries and other labor income. 4 percent. 1 percent. 1 percent, of "unearned" income. " Total wage and salary disbursements include the salaries of highly paid executives and of television and motion-picture stars.

In those five years unemployment among teenagers (16 to 19) was also higher, as it is now, than in the working force as a whole. But the gap in this respect between white and black teenagers was comparatively small. 1 percent. Since that time the situation has been steadily deteriorating. 8 percent. Harm of Minimum Wage Laws By far the main cause of this has been the Federal minimum wage law. 60 an hour in February, 1968. But the law cannot make a worker worth a given amount by making it illegal for anyone to offer him less.

Miller, Rich ManPoor Man, New American Library, 1964, p. 47. , under the official "povertythreshold" level] and most of them were poor by national standards; yet 52 percent owned television sets, 46 percent owned automobiles, and 37 percent owned washing machines. 9 To sum up: It is difficult, and perhaps impossible, to frame a completely objective definition of poverty. Our conception of poverty necessarily involves a value judgment. People in different ages, in different countries, in different personal circumstances, will all have different ideas of what constitutes poverty, depending on the range of conditions to which they themselves are accustomed.

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