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Government subsidies allow a persons surviving wage to be lower. And with low skilled workers, their wage tends to be pushed down to a wage they can just about
by UK-AL 13y ago
Government subsidies allow a persons surviving wage to be lower. And with low skilled workers, their wage tends to be pushed down to a wage they can just about survive on, or your workers die. Thus government subsidies are indirectly founding companies, by allowing them to lower wages beyond what would normally be possible.
- yummyfajitas 13y agoEmployees will not die if their wages are reduced to $4-8/hour. As proof that this is not the case, consider that most nations of the world have lots of people not dying on an unsubsidized $8/hour. Mexico is a fairly wealthy nation, and the GDP/capita is equivalent to a full time job at $8.33/hour (adjusted for PPP). Literally billions of people avoid death on far less than $8/hour. https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)...
- UK-AL 13y ago1 dollar means different things in different countries. In some countries 1 dollar could buy you decent food, for a few days. There's differences in rent. Living in a slum is illegal in developed countries.
- yummyfajitas 13y agoThe numbers I give are adjusted for purchasing power. Workers will not engage in a massive die off on $8/hour or even $1/hour.
- UK-AL 13y agoWell I'm just repeating Adam Smith on how low skilled jobs are priced. They go as low as they can go, without something bad happening to the employee.