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Minimum Wage vs. Balance

I began, several weeks back, by stating that minimum wage laws are a terrible idea. I made several posts laying the ground for the idea that minimum wage laws represent only a small part of the problem of government intervention, which upsets the balance in markets established through unfettered exchange. I now return to the … Continue reading Minimum Wage vs. Balance

Wage Slavery

Advocates of socialism frequently claim that employers hold workers in wage slavery. They believe that “corporate” bosses force them to work in unbearable conditions at jobs they cannot quit. Adding insult to injury, the “bosses” profit from the excess value created by the workers. This form of wage slavery only occurs under “capitalism” as practiced … Continue reading Wage Slavery

Socialist Benefits

We all like benefits but look at the intervention required to provide those benefits. If you believe that intervention only applies to other people (i.e., rich people), let’s examine that assumption. Let’s make it personal. Take a look at your last paystub. You know your “take-home” pay. Yes, that’s what you have to support your … Continue reading Socialist Benefits

Wage & Price Discovery

Socialists show reluctance to accept deferred payment or agree to absorb any losses. Even before they face those issues, how can they establish what portion of revenues they actually deserve? They cannot determine the price of the end product beforehand, and they cannot separate their real contribution to revenue. They have a real dilemma. Value … Continue reading Wage & Price Discovery

Socialism Would Pay Full Value

Socialists want full pay for their work. Would they delay that payment until completion of production? Would they agree to cover any losses after the sale of the product? I recently view a video in which a student, who proudly identified himself as a socialist, confronted the speaker with the question: Why don’t workers receive … Continue reading Socialism Would Pay Full Value

Who Really Determines Wages?

Many people have the impression that business owners unilaterally determine wages and prices. They believe that consumers have little control in the process of setting either prices or wages. People who believe this are gravely mistaken about how the price discovery process actually works. Prices are ultimately determined by what consumers willingly pay. In any … Continue reading Who Really Determines Wages?