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He wasn't talking about subsidizing people. Letting companies pay people too little is subsidizing those inefficient unproductive companies. Society might subsi
by scotty79 2y ago
He wasn't talking about subsidizing people. Letting companies pay people too little is subsidizing those inefficient unproductive companies. Society might subsidize inefficient people because of humanity. Subsidizing inefficient unproductive companies is just dumb.
- bryanlarsen 2y ago> Letting companies pay people too little is subsidizing those inefficient unproductive companies. That's a direct subsidy to people assuming that too little subsidy is supplemented with welfare or food stamps. It may also be an indirect second-order subsidy to a company, but it is first and foremost a subsidy to people.
- vidarh 2y agoIt's a subsidy to people, but it's the indirect subsidy to companies by allowing them to lean on people being underpaid and have society pick up the bill that is a problem. You can "fix" that problem by eliminating welfare, or by ensuring companies pay enough. Since most of us don't want people to starve, either we're stuck with the problem, where we're distorting the market in a way that incentivizes behavior that harms society, or we level the playing field by ensuring companies pay enough.