tag:blogger.com,1999:blog-2484626660177622626.post5753612643104044970..comments2024-03-27T19:54:34.479+00:00Comments on Falling On A Bruise: Workers Of The World UniteFalling on a bruisehttp://www.blogger.com/profile/05518409624331248084noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2484626660177622626.post-8794513185401957642008-04-28T22:44:00.000+01:002008-04-28T22:44:00.000+01:00Re-read the 4th paragraph nog. That's why workers ...Re-read the 4th paragraph nog. That's why workers get angry.Falling on a bruisehttps://www.blogger.com/profile/05518409624331248084noreply@blogger.comtag:blogger.com,1999:blog-2484626660177622626.post-71454537076089737762008-04-28T03:30:00.000+01:002008-04-28T03:30:00.000+01:00Lucy,"Workers" (in the loaded sense used here) can...Lucy,<BR/>"Workers" (in the loaded sense used here) can do a lot of things. They can find better employers. They can start their own businesses including ones that compete against their former bosses. They can retire early. <BR/><BR/>But wait a second, when there's no <BR/>competition for labor I guess you'd <BR/>be right in saying the only things the workers can do is quit. But the government is the only institution that could possibly stack the labor market so firmly against the "workers".<BR/><BR/>I'm not that up on the specifics of British politics but I'm of the understanding that there are a lot of government run or controlled industries. In the open sector there are lots of different employers competing for employees but in the government sector there's only one group hiring.<BR/><BR/><BR/>And it's worth mentioning that business administrators and entrepreneurs don't ultimately have any control over (real) wage rates. Wage rates are determined by the consumers on the open market. Businesses are price takers.<BR/><BR/>-Here's a bit of a more technical explanation. Value is subjective. Marx based his theories on the labor theory of value which has been refuted for over a hundred and twenty years. <I>The labor theory of value is to the economic science as the flat earth theory is to the science of navigation</I>. <BR/><BR/>So, again, the value of things, insofar as the social sciences are concerned (theologians may argue over divine value if they wish), is determined by individual preferences. If an individual values "car gas" at "X", that individual would never purchase car gas at any price above X <I>even if there was no gas available below that price</I>.<BR/>If a producer spends "$100" to produce a liter of gas that a consumer values at $80 or less the producer must take the loss and either sell the gas for a loss, use it himself, or pay to store it.<BR/>And if this producer spends $10 on raw materials and $90 on paying a man $15 an hour for 6 hours the employer must, after learning of his folly, either cut costs or go out of business. This means that the "worker" is either fired or forced <B>by the consumer</B> to take a pay cut.<BR/><BR/>If the government were to pass a minimum wage law of $15 the gas simply wouldn't be made until technology allowed it to be produced at a lower cost. <BR/><BR/>Businesses and their employees are at the mercy of the consumers. And the consumers happen to be workers themselves.<BR/><BR/>-A final point is that it is less sensible to look at things from a producer's perspective than a consumer's perspective. The producer wants to do nothing and get payed everything. The consumer wants everything and wants it to cost nothing. <BR/><BR/>It is the consumer's perspective, then, that presses progress forward.<BR/><BR/>Q.E.D.<BR/><BR/>-NogNoghttps://www.blogger.com/profile/10741030321448255586noreply@blogger.com