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I didn't say we should adopt India's economic system. I said that we have a labor scarcity, not a surplus, as demonstrated by all the work people would like to
by yummyfajitas 11y ago
I didn't say we should adopt India's economic system. I said that we have a labor scarcity, not a surplus, as demonstrated by all the work people would like to have done - and which other parts of the world demonstrate can be done - but which isn't being done (by humans or robots). Therefore a solution designed for a surplus is counterproductive.
If indeed we have a shortage rather than scarcity (note the terms are not synonymous - a shortage is a quantity supplied below market clearing rates), then we should focus on the root causes of that shortage rather than simply ignoring the problem. Minimum wage might be one such cause, though I rather doubt it (market wages tend to be way above min wage). I suspect that if we have an actual shortage it's regulatory constraints [1] and work disincentives [2] that are the real problem.
[1] In the US people seem willing to sell cigarettes at convenient locations, much like in India. But we have the unfortunate habit of using violence to prevent this. https://en.wikipedia.org/wiki/Death_of_Eric_Garner https://en.wikipedia.org/wiki/Death_of_Eric_Garner
[2] For instance, witness NPR's article on massive numbers of people committing disability fraud to avoid work. If we cracked down on disability fraud, some of those folks would have to return to the workforce. http://apps.npr.org/unfit-for-work/ http://apps.npr.org/unfit-for-work/