From An Economist

Free Time is Not Free

We have been discussing the issue of minimum wage. The economist in me was captivated by the "Quotation of the Day" in today's email version of the New York Times.

"I have come to realize that my free time is worth a lot to me."
- Alan Beggerow, unemployed steel worker

The quotation came from a very interesting and fairly in-depth article by LOUIS UCHITELLE and DAVID LEONHARDT in today's New York Times entitled "Men Not Working, and Not Wanting Just Any Job."

What Mr. Beggerow has come to realize is that in accepting a job, he is selling not only his labor and his skills, he is selling his time. And time is a very valuable commodity. Most of us never really have the opportunity to truly gauge just how valuable our free time is.

That is another aspect of the minimum wage discussion I have largely overlooked.

Just how all of this is going to play out over the next decade is far from clear. Huge numbers of Baby Boomers are entering their 60's. Will they continue to work, or will they discover the true value of their free time?

If they leave the workforce – as they very well may – they will create a massive across-the-board shortage of skilled, experienced workers. This could drive unemployment in the U.S. to record lows, drive up the cost of labor, and put the immigration debate on the back burner.

The Boomers have proven themselves to be very independent. But once they discover the joys of free time, I'm betting it is going to require large sums of cash to lure them back to work.

It's definitely something to think about.