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“Please allow me to introduce myself …. I’m a man of wealth and taste”

2016/06/18

Pleased to meet you, hope you guess my name
But what’s puzzling you is the nature of my game

Well, If You’re Going To Start Your Minimum Wage Discussion With Nonsense Then…

…that 96% of Americans make more than the wage floor is again an indication that the wage floor isn’t what is determining wages.

Worse than this there’s a desperate misunderstanding of Karl Marx here, another one of those Classicals. For it was Marx himself who pointed out that it is precisely that market which boosts the wages of the workers. Capitalists make money through skimming the profits made by employing labour. When there’s that reserve army of the unemployed then they don’t have to share any rise in such profits with the workers. Because if anyone gets Bolshie they can just fire them and get someone else. But as soon as there’s no reserve army, we’re at full employment, then a rise in the profits will lead to a rise in wages. Because the capitalists are in competition with each other for access to those now higher profits that can be made from the workers. Thus, to get more workers to make more profits the capitalists must tempt workers with higher wages.

Marx’s warning here was about monopoly capitalism, what we today would call monopsony. Where the capitalists collude in order not to compete with wage offers: you know, like Apple, Google, Adobe and so on did in that wage cartel case in Silicon Valley?

The basic statement of the case is 180 degrees the wrong way around then. Which really isn’t a good start to a policy paper about anything at all.

(Excerpt) Read full article at Forbes.com 
June 17, 2016
[Byline Tim Worstall]

Sympathy for the Devil, written by  Keith Richards, Mick Jagger

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