Re: Effects of raising minimum wages in USA

On Wed, 28 Jun 2006 15:29:56 +0200, Nospam <nospam@xxxxxxxxxxx> wrote:

Robert Kolker wrote:

How so? There is no force or fraud operative. If the workers do not like
the company they can work elsewhere or go into business for themselves.

RK, you are again with the pants down while defending a broken ideology :-)

Uh oh, your sense of humour is improving rapidly.

One of the more usefull definition of wealth is the one defining the wealth
in time units, i.e.: wealth it is the amount of time one can maintain a
decent life level without earning anything.

A "decent" by what standard?

If W (wealthy guy) and P (poor guy) want to reach a deal so P work for W
and W want to force P to accept anything he wants, he just can wait for P to
consume all his accumulated wealth then by starvation he is forced to
accept anything offered.

This comes from their ability to make good economic decisions. No wonder a guy more skilled in the subject is wealthier. This is exactly the way it should be, this is how economic incentives work and one of the best features of market economy. More resources for people better skilled in applicating them is a good thing I would say.

Obviously, the concept of "fair" deal brakes down just in the beginning when one wants to define a "fair" deal as something more than informed and voluntary. If we base the concept on relative economic strength of business partners then all we get is absurd. Relative strength of me and some department store is a disadvantage for me but it is me (a customer) who is a master here. Relative strength of a good specialist looks like a disadvantage when compared to a company that wants to hire him but it still can be him at a better position. So no, relative economic strength is worth nothing as a criterion of fairness. So, what do we have left? Information and free will. If someone is unable to make good decisions then it is his problem, not his business partners'. He can ask for help, search for family support, create an organization to start from a better bidding position but if this person employs state monopoly for power then it is no longer a "fair" agreement. There is no company that can match guns and tanks. The only thing it can do is to try to expand abroad and avoid doing business in a country that tries to coerce it to do something. Good for it.

It is called economic coercion

Called by nospam, I would add. This way, everything can be proved to be coercive which makes this definition useless.

and it is the most
large used coercion world wide.

P look for a job because he needs money. To start a business you need an
investment i.e. money i.e. what he does not have.

Not true. The last thing one needs to start a business is money saved by oneself. But I did not expect any knowledge about starting a business or business in general from you :-)


--
Michał Gancarski
"If there's not drama and negativity in my life, all my songs will be really wack and boring or something." Eminem
.

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