A job’s wage is not a measure of dignity — it’s a reflection of economic value. Confusing the two leads to policies that undermine opportunity.
For nearly a century, economists struggled with the famous diamond-water paradox. Water, while so essential for life, is so cheap. Diamonds, on the other hand, are luxuries that command such a high price.
The resolution, articulated by Carl Menger, was that value is not inherent in goods themselves but comes from the importance individuals place upon them at the margin. Prices, as such, reflect marginal valuation conditioned by scarcity, not total usefulness in general.
A similar misunderstanding applies to today’s debate over a “living wage.” Advocates are often quite explicit in their demand. The National Employment Law Project, for example, insists that “every job should pay a living wage.” The moral appeal is clear. Economically, however, such an assertion assumes what needs to be proven: that every job creates enough value to garner such a wage.Wages Are PricesWages Are Prices
A Thought ExperimentA Thought Experiment
The Living Wage ProblemThe Living Wage Problem
Wages Reflect RealityWages Reflect Reality
...read more at thedailyeconomy.org
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#1413701
No signs of a bottom either as automation is only increasing, this makes each employee more productive but also more commoditized.
The UBI bleeting we've heard for decades by the left isn't a leftist thing anymore, Elon talks about something adjacent now... "Trump accounts" are a response for the need for people to have equity because wages do not scale.
Back when the private sector abandoned pension plans for 401ks, the government did not, now its the government financially trapped by not equitizing its labor force.
Wages are dead, equity is the only solution.
Especially if we’re eventually going to have an appreciating currency.
Indeed, this may well have been one of the NatSec (social stability) considerations for Bitcoin, make the currency itself an equity.
Wages reflect the value a job creates, not moral wishes. Forcing a living wage on low-value jobs just destroys those jobs
Like most interventionist ideas, this falls apart under the slightest scrutiny.
Most importantly though, wages are offers. If a wage is not worth your time then don’t take it. Getting mad at an option someone gave you is stupid and entitled.
No bahaha I’m in Vancouver I’m fucked forever
iiiiiiinteeeeresting framing. Insta-read