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> Yeah, a year or two. That is a much different situation than the poor are in. And this is the problem...you think the situation is the same. So do a lot of ot
by danjayh 11y ago
> Yeah, a year or two. That is a much different situation than the poor are in.
And this is the problem...you think the situation is the same. So do a lot of other well meaning people. They think that the poor are not making the decisions you would make so they must be stupid or not capable of reason somehow. But the fact is, facing hunger in a year is much, much different than facing hunger next week. Having some sort of built up human capital, be it a degree or work experience or connections or whatever is much different than having none of those things to fall back on. Having connections, be it family or friends, that can help you out in a pinch is much different than everyone you know balancing on the razor's edge too.
Missing a payment on your car in a month or two if you lose your job and making uncomfortable decisions is much different than not being able to eat or put gas in your car and leads to much different calculations.
It is the myth that we are all in the same boat that allows us to vilify those stupid poor people who can't just do what needs to be done to get themselves out of their situation.
You can make 20k flipping burgers at McDonalds. 20k is enough to build up a safety cushion. I'm a big fan of Dave Ramsey's, I listen to his show, and couples with a family income of ~40k call in literally every day having paid down ALL of their debt and built up a 3-6 month emergency fund (cash!). If they are willing to indebt themselves deeply, they have the same 'year or two' that I'd have if I indebted myself deeply. I have friends who have accomplished this, on 40k/year. Granted, the cost of living in the midwest is fairly low, but wages are also lower than elsewhere (our local McDonalds pays $9.50/hr starting, Wal-Mart is in the same ballpark).
> Perhaps they can, but at what cost?
I know exactly what it feels like. We were not in a good financial situation when we got married. Beans & rice, rice & beans. But we dug ourselves out and bought a modest house. No, we didn't go to movies, on vacations, or out to eat; we didn't have high end smartphones (even 'good' -- mine had a cracked screen), nice cars (we drove rustbuckets), remotely up-to-date PCs, or decent clothes (I wore my clothes to the point that they began to shred). I regularly caulked our brittle siding and tarred our aging roof to keep the water out, bondo'd our cars, and fixed their myriad mechanical problems with shitty, nearly free Harbor Freight tools. So yes, they can, and at a cost that I know and that I've paid myself.
>I've seen people making 100k+ spend so foolishly that they are effectively 'pushing for nothing' (zero or negative net assets).
Me too. But you mistake 'spending on consumption (enjoyment of their time)' with working for nothing. That's not nothing -- they are getting value for their money and time. That's not saving but I am talking about being in a situation where you have to transact with someone or lose everything. Very, very different.
Not different at all. If that fool loses his job, he'll lose every last thing he has, because he doesn't own it and the bank will take it back. Yes, his path to homelessness was more comfortable, but he'll end up in the same place.
> threatening another with imprisonment if they don't remit a significant portion of their income to that class -- are you OK with that?
* Yes, because if they are like your friends above and they truly get themselves into trouble, they'd have that guarantee as well.*
If they don't want that guarantee (I don't), should they have option to opt-out? Personally, I find the idea of forcibly taking from one person to give to another abhorrent. Especially when you will send the person to prison if the resist the taking, and to their grave if they resist the prison. I love charities, I give to charities, and I think they're a great solution. I'm proud to live in an area with extremely high charitable giving (Grand Rapids, MI), and I love to be a part of that. I do not love being forced into it, and if a government wants to implement something like that, it should be done at a more local level (certainly no higher than the state), so that the people effected by the decision have a greater voice in it.
>professionals are only partially paid based on the profit they generate.
Partially, in this case, makes all of the difference.
> labor demand vs. labor supply, just like everyone else's
Except the poor. Sure their labor is more plentiful and therefore cheaper, but cost of that labor is depressed because __their bargaining position, their best alternative to a negotiated agreement, is negative__. That is a big weight on the scale.
Not sure what you're trying to say here: __ .... __.
> it is actually asking them to work for exactly what their labor is worth
Again, it isn't because of the 'or else' chip on the scale. Besides, should we accept jobs in our society that don't pay enough to support the maintenance of the capital it uses? We don't offer to subsidize the cost of ink for a printing press or gas for a logistics company, why should we subsidize the cost of human labor?
No, we should not subsidize the cost of the labor. Exactly my point. Many professionals work 60+ hours/week, and even at crap jobs like McDonalds, 60+ hr/week pays $30k+, which is ample income to support a person.
- clavalle 11y ago>You can make 20k flipping burgers at McDonalds. 20k is enough to build up a safety cushion. If you are single with no dependents, live in a cheap area, and live close to work, maybe. We are having a general discussion (thank you for the thoughtful discussion, BTW), and not to get too deep into specific policy plans but I'd like to see a two tiered approach. First tier: Long term employees living off of the wage. There is a minimum, living wage. It should be enough to support a person and at least one dependent at 40 hours a a week. There should be a national living wage which represents the absolute floor and state and local living wages that can add to that based on local cost of living differences. Second tier: Short term employees or employees not living off of the wage. No minimum wage at all at this tier. Intended for teenagers, the elderly that just want to work, the independently wealthy or otherwise supported that just want to work for pocket money or because the structure of the organization doesn't allow for volunteers. This would be enforced simply by the government charging businesses if their employees file for welfare for the cost of the welfare + administrative cost + a small penalty. If your business requires long term, well trained employees you'd better pay them enough that the public is not subsidizing them. However, if you can get away with using teenagers, college students, or the bored elderly, and people that generally don't have to work to survive if they don't want to, then more power to you. Pay what you want. >Not different at all. If that fool loses his job, he'll lose every last thing he has, because he doesn't own it and the bank will take it back. Yes, his path to homelessness was more comfortable, but he'll end up in the same place. Considering how much he's making, I'd say he probably has some sort of personal human capital built up and is not in nearly as dire a situation as someone who hasn't had that opportunity that ends up at zero or worse. > I find the idea of forcibly taking from one person to give to another abhorrent. Really? I find the idea of paying to live in a society that provides much more value for any amount of money I can give perfectly acceptable -- certainly more desirable than the alternative. You don't think you'd benefit from living in a society where no one would have to worry about starving, going homeless, or affording their meds? I'm not advocating this out of the goodness of my heart or to prevent human suffering. It is a cold calculation that happens to look like altruism. The highest expected utility for a system of transactions (the market) can only be achieved if the group of transactions is overall positive. The only way to guarantee this result is if every transaction within that system is positive. The only way to guarantee that every transaction is positive is if all parties to the transaction see a net gain in value. When the best alternative to a negotiated agreement is negative and the other party knows this, they can exploit it (and they will if they are rational). This means one party loses and the other gains value or utility. This is the situation the desperately poor are in when they sell their time. They are in a known bad position. What was a guarantee is now a question. Does the gain in value of the one party override the loss in value of the other? Sometimes yes, sometimes no. It is hard to guarantee a win-win transaction in every case for many different reasons (information asymmetry, externalities not taken into account etc.) but in this case it is easy and it affects a huge swath of our society -- just guarantee they can walk away from a transaction without coming to harm. Just that simple. Looks altruistic but is really about maximizing overall utility. Why play with finding the spot where exploitation tips the scale into overall negative value if we don't have to?