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the problem is that the "market wages" generate both humanitarian disasters of poverty and also demand gaps wherein people can't afford to buy goods, which puts
by cryoshon 8y ago
the problem is that the "market wages" generate both humanitarian disasters of poverty and also demand gaps wherein people can't afford to buy goods, which puts a drag on the economy.
#2 is an issue because government transfers nearly always have terms attached. people get food stamps for food, housing assistance for housing, etc. so demand gaps can still occur because people still don't have the "right" kind of money. plus, it's less efficient because the government has to be involved.
i'm in favor of a wealth tax, however. implementation issues aside, it's the most realistic chance we have of making businesses pay up.