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This article is excerpted from the FEE Daily, a daily email newsletter where FEE Policy Correspondent Brad Polumbo brings you news and analysis on the top free-market economics and policy stories. Click here to sign up. "Amazon said Wednesday that it plans to give more than 500,000 of its workers a raise as it seeks to attract new workers," ABC News reports. "The online shopping giant, which already pays new hires at least $15 an hour, said it will start increasing pay between 50 cents an hour to $3 an hour starting next month." Why is Amazon doing this? No, it's not out of Jeff Bezos' generosity or the goodness of their hearts. Market forces are pushing them to raise wages. As lockdowns are finally being unwound across the country, demand for goods and services is surging. To keep up with increased demand, businesses are scrambling to hire new workers. But, in part because of counterproductive welfare programs and in part due to underlying market realities, there's a shortage of available workers. This means that in order to get people to come aboard, Amazon has to open its checkbook and increase wages. Its competitors are leaving it no choice. Of course, Amazon is far from a patron saint for free-market capitalism. The company engages in crony capitalist rent-seeking by lobbying for anti-market policies like a $15 minimum wage and corporate tax hikes because it knows these will hurt its start-up competitors. But nonetheless, the news that Amazon is raising wages for half a million Americans is a good reminder that market competition is alive and well. Like this story? Click here to sign up for the FEE Daily and get free-market news and analysis like this from Policy Correspondent Brad Polumbo in your inbox every weekday. designer bags cyber monday

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