4 ms·

> 'the cost of bare subsistence is the theoretical true market price of labor under capitalism' What assumptions do you need to make for that to be true?

• amoss 4y ago
  * People like to eat. * Capitalists don't like to give people money. * People will not work for free. Just about covers it.
  • bjornsing 4y ago
    I don’t get it. In capitalism labor is a commodity like any other: it’s price is the market clearing price where supply meets demand. You need at least some assumption that says “labor supply will expand infinitely as long as it’s possible to survive on a salary”. That assumption seems incorrect to me.
    • amoss 4y ago
      Does your model explain the need for a minimum wage?
    • deleted 4y ago
      [deleted]