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The simplest answer is that many people believe the "free market wage" is not always the apropriate wage. Anyhow your defining the free market wage, as the wag
by jason13 19y ago
The simplest answer is that many people believe the "free market wage" is not always the apropriate wage.
Anyhow your defining the free market wage, as the wage the get paid if the have no legal help in there negotations. And then your defining the appropriate wage as the free market wage.
So you are basically stating that by definition the appropriate wage for people to be paid is the wage they could negotiate if they have no laws to help them negotitate.
Basically your conclusion is the axiom you start with.
- Goladus 19y agoAs PG said in "How to Create Wealth" the contributions of individual workers can not be measured individually. They have to be measured as a whole. That's why the negotiations often need to be done at the organizational level, rather than on an individual basis. The problem there, of course, is that it becomes harder to hire and fire, thus it becomes harder to maximize the skill of your workforce. Which is why employers really need to think about the consequences of being evil.
- gibsonf1 19y agoThe free market wage is the amount that an employer is voluntarily willing to pay, and an employee is voluntarily willing to be paid. To say that this is "inappropriate" is to argue for the introduction of force into one or the other side of this equation which would definitely be inappropriate.