3 ms·
Both are a form of supply and demand. 1) Consumers want the product which provides them with the most value given the item's cost. 2) Workers and companies wa
by aeternum 6y ago
Both are a form of supply and demand.
1) Consumers want the product which provides them with the most value given the item's cost.
2) Workers and companies want the most value per their capital expenditure (whether personal labor or funds).
I don't see any problem with that, both can be maximized at the same time and work as a balance. One issue is that we've become much better at optimizing #1, and have become worse at optimizing especially the worker part of #2. Workers still relatively rarely switch jobs, which eliminates a good amount of upward pressure on wages.
Stuff like the employer-paid health insurance tax deduction is detrimental to this liquidity. Give the deduction to individuals, not employers.