Exploitation by the masses?
Since one of the comments touched on this, I figured I ought to address this aspect of the minimum wage.
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The minimum wage issue can also be seen in terms of power transfers between individuals, businesses, and the government. (** Warning** I intend to refer to the Founding Fathers in the next paragraph, so if you think they’re just a bunch of out of touch old guys, stop reading now.)
Our Founding Fathers realized the danger inherent in concentrated power having lived under the thumb of the British crown. They built safeguards into our constitution to prevent any one branch of government from having too much power over the others. However, they didn’t stop there. They also built in safeguards, especially in the Bill of Rights, limiting the power of government itself.
The Founding Fathers knew that man was dangerous when he had too much power over others. One of the most shameful examples of this in our history was slavery. Through government, the slave owners were able to dictate economic terms to the slaves, creating a captive labor pool.
In contrast to slavery, in a free market system, all interactions are consentual. Employees provide their service as labor, and employers compensate them. Since there are multiple laborers and multiple employers, individuals can shop around for the most advantageous deal. This limits both the power that businesses have over individuals and the power that individuals have over business.
However, the tables are continuing to turn. Now, the low wage earners and their willing accomplices in government use the minimum wage to dictate economic turms to business. This creates a captive employment pool who must pay whatever wage or healthcare benefit the government sees fit. Once again, government has become a tool of one class, and business becomes the tool of government to satisfy that class. Those in government, knowing that owners of business are far outnumbered by those who work for business know where their votes are coming from and acquiesce.
** Disclaimer: (only necessary since offense became a crime) In the above, I’m in no way trying to equate slavery and the minimum wage. I am using both to demonstrate an economic principle. I deeply regret that that statement was necessary.
…
The minimum wage issue can also be seen in terms of power transfers between individuals, businesses, and the government. (** Warning** I intend to refer to the Founding Fathers in the next paragraph, so if you think they’re just a bunch of out of touch old guys, stop reading now.)
Our Founding Fathers realized the danger inherent in concentrated power having lived under the thumb of the British crown. They built safeguards into our constitution to prevent any one branch of government from having too much power over the others. However, they didn’t stop there. They also built in safeguards, especially in the Bill of Rights, limiting the power of government itself.
The Founding Fathers knew that man was dangerous when he had too much power over others. One of the most shameful examples of this in our history was slavery. Through government, the slave owners were able to dictate economic terms to the slaves, creating a captive labor pool.
In contrast to slavery, in a free market system, all interactions are consentual. Employees provide their service as labor, and employers compensate them. Since there are multiple laborers and multiple employers, individuals can shop around for the most advantageous deal. This limits both the power that businesses have over individuals and the power that individuals have over business.
However, the tables are continuing to turn. Now, the low wage earners and their willing accomplices in government use the minimum wage to dictate economic turms to business. This creates a captive employment pool who must pay whatever wage or healthcare benefit the government sees fit. Once again, government has become a tool of one class, and business becomes the tool of government to satisfy that class. Those in government, knowing that owners of business are far outnumbered by those who work for business know where their votes are coming from and acquiesce.
** Disclaimer: (only necessary since offense became a crime) In the above, I’m in no way trying to equate slavery and the minimum wage. I am using both to demonstrate an economic principle. I deeply regret that that statement was necessary.
posted by Average guy | 7:58 PM
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