Pensive the Ludicrous wrote:
Quote:
People who advocate for increasing minimum wage as a means of equalizing social/class imbalance simply don't understand basic economic principles.
Not at all. What you mean to say is that I don't understand basic
capitalistic economic principles, which of course is false, but besides the point.
Economic principles do not change based on what sort of mechanism you prefer. Something cannot have more value than it actually has. If you artificially grant it a greater value, you do so at the expense of something else. The only way your ideas might work is if you have some sort of centralized authority determining what everything is worth. Um... That's pretty much failed every time it's been tried.
The relative value of a burger flipper's labor to a computer programmers labor isn't arbitrary, and it has nothing to do with capitalism. Capitalism simply allows us to determine the "true" value of something. Every other mechanism creates false values, introduces inefficiency, and ultimately
increases inequity within the society.
Quote:
You're assuming that the advocation of increased wages is to be applied in the framework of a capitalist economic system, which, as you have intuited, would be dumb. It's like trying to extinguish the sun with a garden hose. The means of equalizing social class would require an upheaval of "basic economic principles" as you conceive of them, with higher mandated low wages as a natural consequence.
Even your own sentence belies the ludicrousness of what you're saying. "higher mandated
low wages". Um... "low" is a relative statement. Those wages are lower than other wages. If you "raise the low wages", you must by necessity also raise the high wages, right? And then you're right back where you started from. If the farmers wages go up, the cost of his product increases as well. Thus, the true value of the wages paid to everyone else decreases in relation to the increase in the cost of goods. Any effect you create is short lived. Again. Barring some massive authoritarian price controls, everything will re-adjust to maintain the ratios of value.
Quote:
Of course none of this addresses my criticism, which is that the market economy you so love to fellate is just as guilty of creating wealth discrepancy as are dudes who calculate that they are better off not working because the pay along with 25 cents can buy them a cup of coffee.
The mistake you are making (one of many) is thinking that I believe that wealth discrepancy is a bad thing. It's not. If everyone gets the same value for their labor, everyone will do the easy jobs and no one will do the hard ones. Why bother spending years taking classes to learn computer programming, then years more honing your skills if you're going to earn the same wage as you do now flipping burgers? It's a ridiculous and unworkable prospect.
Wealth discrepancy (really "wage discrepancy") must exist. Eliminating it would make everyone "equal", but they'd all be equally poor, not equally rich. And the whole would suffer far more as a result.
Quote:
Quote:
The market will simply adjust the costs of goods and services to account for any such change.
As an aside, I might have to revise my position on the passive voice.
What do you think will happen? If the burger flipper is suddenly costing his employer twice as much per hour, what happens to the price of burgers? If you apply this to all labor, everything rises in cost in direct relation to the increase in wages. Barring the aforementioned price/wage controls and this will ripple through the entire economy adjusting the cost of both goods and services (including wages) for everyone. Raising minimum wage always has this effect. Either slowly if there aren't too many people currently under the new minimum, or faster if there are many.
Quote:
Quote:
The capitalistic market rewards people based on the value of their labor to others. What other way would you do it?
Reward people based on the value of their lives, as human beings. My god that was easy.
And who gets to decide what the dollar value of a life is? And what happens when the total value of all the labor in the country is less than the value we've placed on all the lives of all the people in the country?
See. If you reward people based on the value of their labor, they will labor more in order to gain more reward. If you just reward them based on the value of their life, and we assume that everyone is "equal" (and thus their lives are worth the same), then no one has any reason to work hard or even at all. But someone has to, right? Someone has to do the labor in order to generate the pool of reward, right? You can't feed everyone unless enough people are working to grow food, and transport food, and distribute food right? Someone has to do this. But who?
We've already seen what happens under your proposed system. The amount of labor done in the society ends out being the absolute minimum needed to provide just enough to keep everyone from starving to death, and not much more. Worse, those who manage to gain control over the central planning of the system reap rewards, while the rest are impoverished.
Capitalism isn't a perfect system, but it's better than every other system anyone has ever tried. Of course, modern socialists (which I'm assuming you are) believe that they can do "just a little price controlling", and not hurt anything. Well. They're just not collapsing the system quite as quickly is all. It's still really moronic.