The standard of living is not raised by arbitrary laws and decrees imposing higher wage rates, but by the rise in the productivity of labor, which increases the supply of goods relative to the supply of labor and thus reduces prices relative to wage rates, and thereby allows prices to rise by less than wages when the quantity of money and volume of spending in the economic system increase.
@thatguyoverthere This ignores how the extraction of profit works. Think about minimum wage as a lower boundary of existence. If your business isn't able to provide that, it simply cannot be profitable and shouldn't exist without further innovation (and that's thinking inside the boundaries of capitalism)
@thatguyoverthere Obviously, minimum wage is not a silver bullet. What's needed is a way to secure every member of society a decent standard of living, including housing, nutrition and access to clean water and air
@thatguyoverthere This is a thing that has always interested me. If we, as a society, are able to produce more food/housing/whatever than the combined needs of everyone in society, how is it possible that there are still starving/homeless people?
If you ask me, the most productive solution to this problem isn't to just keep incrementing the number of dollars and cents people are earning; it's to evaluate why the value of those dollars and cents keeps going down. What forces are causing our money to drop in value and causing poverty?
@waweic why is it the governments job to determine that lower boundary of existence? Why not let the market decide. If you offer someone a wage they can as a free agent decide whether or not the juice is worth the squeeze.
@thatguyoverthere This is the interesting thing. Making very little money is better than making no money at all. So if you need the money to survive, you really have no option but to take a job, even if it pays less then you actually need. "The market" (which is another word for the employers in this case) will always go for the option to pay their workers the least possible amount of money, even if it's too little to sustain their existence
@waweic It's not the responsibility of an employer to ensure that the employee has all of their needs met. It's a contract. The employee isn't the employer's pet, child, or property. I agree to give you my time for an agreed upon price. If that price doesn't improve my status I will use that time to find something that does.
With less government intervention creating a business and working for yourself would be easier.
As long as I am free I will not allow another person to starve me to death.
@thatguyoverthere Your privilege stinks so far that I can smell it here! And I am not even in the US. Have you EVER considered, that there may human beings, who are not able to work for more than a minimum wage? Or are not able to work at all? For reasons beyond their power, like poor parents, being discriminated against, being Black, being a woman, being disabled...?
@waweic The final paragraph in the open letter I linked to early really says what I think better than I can word it myself:
The principle here is that we need to look to greater economic freedom, not greater government intervention, as the path to economic improvement for everyone, especially the poor.
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