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Things like "fair pay" and "living wage" are political talking points. In short, what the living wage is really about is not living standards, or economics, bu
by missedthecue 7y ago
Things like "fair pay" and "living wage" are political talking points.
In short, what the living wage is really about is not living standards, or economics, but morality. Its advocates refuse to come to terms with the fact that wages are market price–determined by supply and demand, the same as the price of oil, steel, corn, or coal. And it is for that reason, rather than the practical details, that the broader political movement of which the demand for a living wage is the leading edge is ultimately doomed to failure: For the amorality of the market economy is part of its essence, and cannot be legislated away.
- deleted 7y ago[deleted]
- lotsofpulp 7y agoI think the doom to failure part is due to a scarcity of resources (especially an environment to pollute), which inherently causes distribution issues. If the world had an infinite number of detached single family homes in places with fresh water and secure food supplies and good weather, making things "fair" would be quite easy. We can certainly do better than we currently are, but the underlying reason things aren't fair is that nature doesn't offer fair.
- deleted 7y ago[deleted]
- thatcat 7y agoLol, the price of corn, or even oil, coal, and steel are constantly adjusted by gov. You've proven the opposite of your point - market price is political and can be controlled when it is politically favorable.
- jnwatson 7y agoThe government doesn't control the price of corn, oil, coal, or steel except indirectly via government policy.
- burkaman 7y agoSubsidies paid directly to farmers are not indirect. The Energy Policy Act (https://en.wikipedia.org/wiki/Energy_Policy_Act_of_2005 https://en.wikipedia.org/wiki/Energy_Policy_Act_of_2005), which sets a mandatory minimum amount of corn that must be made into ethanol, is not indirect.
- viklove 7y agoTurns out we value corn more than the people who farm corn. What a time to be alive.
- munk-a 7y agoFor Oil the US has a strategic reserve that they dole out whenever they need to appease the public - you could say this is an indirect effect, but selling it for cheap on the open market to drive the price down is reeeeally close to just directly setting the price.
- thatcat 7y agoLol, the price of corn, or even oil, coal, and steel are constantly adjusted by gov policies. You've proven the opposite of your point - market price is political and can be controlled when it is politically favorable.
- bluGill 7y agoThere is political intervention, but even that works in context of the market and so can only go so far.
- thatcat 7y agoYou could just as easily say it's the market that works in the context of politics, the market can only go so far, due to policy limits. I.e you can't build a nuclear reactor without approval so policy can durectly control market competition.
- bluGill 7y agoYou could, but you would be wrong as the market is universal. You can manipulate it, but ultimately it limits what you can do.
- missedthecue 7y agoYou've missed the point of my comment. I never said that the government can't manipulate markets through price floors, ceilings, or subsidies. I said the market system is amoral. We can't will it to do what we want. You can't force a job to suddenly create $20/hr of economic value by placing a mandatory $20/hr price on it. Basic mathematics doesn't allow that.