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Our society is wealthy partially because of this inequality, not in spite of it. The real risk and extreme danger of penury provides a pressure for people to wo
by giraffe_lady 2y ago
Our society is wealthy partially because of this inequality, not in spite of it. The real risk and extreme danger of penury provides a pressure for people to work for the lowest wages possible, keeping the price of the produced goods low for those who can afford them.
Places with more mechanisms to prevent falling into deep poverty and policies to alleviate it have higher wages at the very bottom, and less wealth both in personal net and GDP per capita. But even then it only benefits local workers: they still depend on an immiserated worker underclass somewhere to make their cheap goods.
Capitalism created this problem, and it is a fundamental mechanism in how capitalism creates wealth. It's not within the powers of capitalism to solve it.