3 ms·
It's simple. When you have an oversupply of job seekers competing for a limited slot of quality jobs, the employers have the upper hand in terms of bargaining,
by RealityNow 9y ago
It's simple. When you have an oversupply of job seekers competing for a limited slot of quality jobs, the employers have the upper hand in terms of bargaining, driving down wages and working conditions until they hit the minimum that people are willing to put up with.
The solution isn't regulation because that only addresses a symptom without addressing the root cause. The only solution is to remove the employee's dependence on their employer (eg. universal basic income).
- conanbatt 9y agoI confess that I'm working my way up to Marx's capital, so I'm currently not convinced of the reserve army concept, and some of the modeling that says that economies tend to lower wages until people get the bare minimum. But even if I believed that to be true, restricting the amount of time they work will just keep pushing the salaries to survival level and it would do so faster. I also have strong hopes for UBI to re-adjust many things in society, like giving stronger leverage to the poorer classes in the imbalance of power they have with employers. However, at my current understanding of economics, i cant see how restricting labor would have positive effects on the aggregate of workers.