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Ultimately, the goal is to maximize worker exploitation. And to maximize exploitation, you need just enough welfare for people to survive, but not enough welfar
by fzeroracer 2y ago
Ultimately, the goal is to maximize worker exploitation. And to maximize exploitation, you need just enough welfare for people to survive, but not enough welfare for them to choose better jobs.
For example; in this scenario if we offered individuals far stronger welfare benefits (schooling benefits, UBI etc) the odds are that very few people would be warehouse workers for Amazon. Alternatively, if we we forced companies to pay for this welfare (such as with progressive taxation based on # of individuals working and on welfare), then they would offer higher wages and with higher wages gives greater mobility.
Make no mistake, this is a feature not a bug of our system. It is designed to keep the poor working in jobs that maintain their poverty.
- abigail95 2y agoPaying people >MPL doesn't work. The math just doesn't work. You can't hire people and pay them less than their output. If you tax Amazon more because they hire low skilled workers then the MPL of each low skill worker decrease. Does that increase or decrease the incentive to hire these people? what happens to the price of labor when demand drops? If your options are pay a worker more than they produce or pay a similar amount in tax, aggregate wages will go down, not up.