Kavekk wrote:
I agree. If your labour alone produces one fish a day and your labour with Mrs. Vashj's fishinator 4000 produces 4000 fish, being paid 1.000001 fish by Mrs. Vashj is a fair wage.
Only if your labor was .0000001 fish more valuable than if you didn't work at all. You're assuming a power for the employer that doesn't exist.
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I mean, it's more than you'd get on your own! Furthermore, if you Vashj owns the sea and you can not fish without working for her, 0.1 fish a day would be a fair wage for your labour. This is a beneficial deal for you, because you would starve slightly faster if you did not do this.
If no one works for Vashj, she starves as well. She's going to attempt to maximize the output of her fish catching business. That means hiring as many people as she can to get as many fish as she can. It's not just you and her alone here.
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Without a worker, Vashj gets 0 fish a day. Alone, you could bargain, but with ten percent unemployment, you cannot.
You're assuming one potential employer, with only one job slot available and an infinite number of potential laborers to fill it. That's simply not the case. The reality is that Mrs. Vashj has competition who'd like to cut into her fish catching business. They'll find laborers skilled in using the fishinator4000 to come and work for them. They'll be willing to pay you more wages to steal you away because the profit motive for them is even greater (they're making nothing at the moment, right?).
That's how the free market works in real life. Only in a fable told by the likes of Marx and Engels does the employer/employee relationship work the way you describe. And they invented that fable precisely to manipulate people into following their own ridiculous political agenda.
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Unless, say, you and all the workers forma union, so that you can bargain on equal footing with Vashj. But, you know, that'd be evil, as you're artifiically inflating wages. We should use the police to prevent this from happening, in our free republican paradiuse on earth. Right?
No. You let the laborers compete for jobs, and you let the employers compete for labor! If you do this, it works. It only fails to work when the government gets involved and tries to "fix" things.
If what you believe was true, TVs would cost 1 dollar each because you could infinitely demand a lower price for the TV.
The real price of something will always be somewhere between the minimum one is willing to sell it for and the maximum someone is willing to pay. Labor is no different than any other good or service in the market. If you can't make a living wage doing what you are doing, then it's because the labor in that particular field has saturated the market. The natural market reaction is that labor will shift to do different things. The value of that labor will increase, eventually achieving a balance between what the workers are willing to work for and the employers are willing to pay.
It does work. There are millions of US citizens right now who work in fields with no government regulations or unions rules mandating our salaries, and yet we make very good wages. Why is that? Could it be because the supply/demand mechanic works for labor just fine?
You should not expect to make a large salary doing something that anyone can do. Cause... well... anyone can do it.
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Accepting for a second that labour is worth whatever the free market would pay you, this is still false. Without government intervention, people still do not pay exactly what a job is worth to have this magic ratio.
Of course they do. Your problem is that you want to apply some other arbitrary "value" to labor. A product is worth exactly what the buyer is willing to pay and the seller is willing to sell it at. You're laboring (haha) under the false assumption that labor is worth some specific amount. It's worth what an employer is willing to pay for it. Period. That's it's "true value". No more and no less.
Do you want to know where the freedom part comes in? If you are working in a field in which there are no government mandated wages, or union manipulation, and you are making a given salary (and presumably it's an acceptable one), then you know you are getting that salary because your labor is actually worth that much to your employer. You know that even if you lose your job, you will most likely be able to obtain another for a similar wage. Because when the free market determines how much your labor is worth, it's actually worth that much. When the government or a union does, you have no clue if what you do is really worth that much to your employer. You live in constant fear that the union will fail, or the government will change its wage laws, and you'll suddenly not be able to make the same money you've been used to.
It's that fear which is used to control you. You are not freed by these things. You are enslaved by them. No matter how "hard" it may seem to have to compete in an open labor market, the results are "fair". You always know where you stand. You are not being lied to, and you are not lying to yourself.
It's a good thing.
Don't you find it the least bit odd that it's those who've adopted the ideas of the union/prevailing wage systems who are most insistent that without them, it would be impossible for labor to get a fair shake? If not having those things was so bad, wouldn't you think all the folks who aren't in unions and aren't working for government wages would be yelling and screaming about the horrible facts of their poor existence? Isn't it telling that it's not the case? Those who aren't in unions are most happy with that condition, while those who are seem to constantly be terrified that the rug will be pulled out from under them by the powers that be.
If what you say was true, it would be the other way around. It's not. That's your first hint that free labor markets really do work. You just have to allow them to work and not constantly try to manage them with government rules.