The Minimum Wage and the Value of Labor

Josh

It is not a market price but a distorted market price further complicated by competition with welfare and unemployment “benefits.”

You’re making my point for me, Josh. In my OP I wrote: "…in the absence of welfare assistance, the shortage of low-wage job openings will act as a disincentive for single and teenage motherhood, and an incentive for furthering education and training… " In other words, I realize that welfare is part of the problem; and I want it gone–replaced by private charity and responsible behavior. As for the minimum wage, I don’t consider that welfare:

**Again, in the OP I wrote that the minimum wage "…**helps those who are actively helping themselves." I believe that hard work is a virtue whose value a just society doesn’t leave entirely to the subjective “market” valuations of self-serving, usually-shallow, often-greedy bosses. The argument that the “free” market works like such a finely-tuned, competitive machine that affording a “living wage” for every worker is impossible–this to me is garbage. Every mid to large-sized company I’ve ever worked for, worked with, or dealt with has shown time and time again a tendency toward wastefulness, redundancy, and inefficiency. And if, to make it work, small businesses and part-time workers have to be exempted, so be it. But I think it’s immoral to pretend that conditions just wouldn’t allow for paying good people good money for working an honest day’s work–while at the same time we pay irresponsible people for sitting on their butts.

Clayton

That’s not up to you, is it?

I’m not arguing that the decision is mine. I’m expressing my preferences, and stating my case for the morality of those changes.

how many people there are on planet Earth is not up to you or me. It’s under no one’s control, not even governments

Again we differ. I say that it does matter–even whether I make my case or not. I too would love to see zero-point energy; and I wouldn’t be surprised if Tesla or his scientific heirs have invented it. The point is, that our simply discussing this preference openly, on this forum, may tip off someone to the technology–someone who is in a position to find out what the government already has, and make it known. But if we don’t voice our opinions and our preferences, even at the risk of ridicule, or of stigmatizing the innocent, then we’re marginally shirking our moral part in that improvement process.

The substances that people ingest is not up to you and me … even if we use the same apparatus of State to hurt a lot of people who ingest the “wrong” substances.

Amendment XV – The manufacture, sale, transportation or use by citizens of the United States, twenty-one years of age or older, of any intoxicant which is not likely to induce severe physiological addiction and withdrawal or temporary insanity, as understood by law, is hereby legalized and made subject to all laws respecting regulation of agriculture and commerce.

But the use of any intoxicant, legal or illegal, concurrent with a violation of a federal, state, local or precinct law shall be a felony crime: an offense that suspends the self-sovereignty of the accused before and during trial and abrogates it upon conviction; until the accused shall have been exonerated, or shall have served no less than one year in state or federal incarceration. And the use of any illegal intoxicant by a custodial parent shall be, ipso facto, felony child neglect and cause the immediate loss of custody of all minor children upon arrest; whereupon custody shall be restored only upon exoneration, or completion of sentence and judicial consent.

Sorry. Couldn’t help myself. And your argument for no policy, because a policy implies a state, is more of a moral abdication, than a defense of pure freedom. Even in a society with common law, one must expect that some “policy” would evolve. And in such a society, you might be called upon to put in your two cents. Should a mother of young children face any sanction–e.g. lose her kids–if she’s addicted to crack, beating the kids, and prostituting herself? Or is this just the freedom of the free market, and the kids, its units of marginal utility?

To charge the taxpayers money in order to try to change things that you don’t like but which aren’t up to you is like investing money into researching unaided human flight (h/t Rothbard).

As for public policy having no effect on behavior, I don’t believe that either. I promise you, even setting the minimum wage aside for the moment, that if welfare were ended altogether, there would be huge changes in incentives and deterrents, and ultimately in individual choices, vis a vis, single, welfare mothers. Guaranteed. Look at China, for goodness sakes: they can make vast changes, whether it’s right or not. And I like the element of public shaming brought into play, the message of morality: it is immoral to bring kids into the world at other’s expense, or when there isn’t enough food to keep them fed. It’s vulgar. Just like I think it’s vulgar to perpetuate the myth that companies operate under such tight competitive restraints that it would be unthinkable to guarantee full-time workers, at mid to large-sized companies, a wage sufficient to establish financial subsistence–a place to live, enough food and clothes, heat, AC, etc. We’ve all seen the policy idiocies and gross inefficiencies of corporations, both from the customer’s point of view, and from within.

At the very least, look at it like this: If we were to disassemble the market-distorting intervention of the state, we should start with corporate subsidies, unnecessary regulation, monetizing debt, cross-generational SS/Medicare transfers, and paying people who are capable of work, not to work. Of all the market distortions from government, and I agree that it is one, the very LAST thing to go should be the friggin’ minimum wage.

this process that is underway will take the control freak by the short and curlies and throw them against the wall.

I wax. (Just kidding.) I’m not torqued up about changing anything. Frankly, I feel as though I’ve already largely done my part, by making public a blueprint for what I believe a moral, functional society would look like–my direct democracy Constitution. At the margin I decided that I ought to make some effort to make its existence known; since it doesn’t exactly pop right up with every related search–but never with the expectation that I would, or could, force others to buy into it. So, about a month ago maybe, I entered into my first such forum, making mention of the document, defending it, and providing links for it. And in the past few weeks I’ve posted arguments here in defense of principles and perceptions of human nature that undergird my blueprint for society and morality.

But, believe me, I’m quite resigned to go down with the ship. I hold no illusions, nor have any ambitions, of using duplicitous language to advance some ulterior agenda. I just feel obliged to try to make a difference in whatever unique way I might be able, given the realities of the current state system. And if the state fails, so be it; but if your scenario of free, common-law cultures doesn’t bear fruit, and it’s more of a hellish squalor, then I’ll have the consolation that I at least tried to make possible a workable, peaceful transition to a freer society. I’m more focused upon first teaching how to swim, before tossing everyone in the deep end.

The government just wants more money for itself and its wars and it will spend whatever it has to spend on the security and propaganda apparatus to ensure the smooth flow of revenue.

You tend to talk of government as though it were a single, cognizant entity: It’s a direct reflection of the weaknesses in human nature. And human nature is a constant, subject only to influences of force and persuasion. Yes, I’m trying to persuade others of the morality of forcing the immoral to act morally, much as we use prisons to force rapists to not rape. All I hear in your protestations against the force of government, as far as what would actually result without it, is a resignation to, and perhaps even a desire for, an ammoral chaos, given real human nature.

Yet I give you the benefit of the doubt that you believe that ultimately from this chaos would emerge a common-law freer society. I just don’t see how you don’t see that the problem isn’t a “government-entity”: it’s damn near everyone. And without some force to control the aggressive among us, they would run roughshod over the supporters of liberty–or keep us constantly at gunpoint. I suppose you like your odds better that way–me, I’m not so sure: I like leaving aggression to the aggressive, on a day-to-day basis. They have their lessons to learn, about the discipline and utility of force; I have other lessons to learn.

I find this to be highly immoral. Can you prove me wrong? (Note that this will require proving that objective morality must exist.)

If all humans are evil, how can one group of them make the rest good?

to the op,

if a $7.25 minimum wage is good, then wouldn’t a $725 minimum wage be even better?

“I won’t respond to every post, as I’m more interested in gathering a diversity of opinion than in defending my own.”

Disingenuous. You did respond to every post and you are quirte interested in defending your own position. There’s nothing wrong with that. It makes you human and not the unbiased objective thinker you pretend to be. Welcome to the world of ideological bias.

TANSTAAFL

if a $7.25 minimum wage is good, then wouldn’t a $725 minimum wage be even better

I’m arguing that honest work has some minimum level of value to a just society, not that everyone should be rich. In a just society one ought not pretend that the forces of a free market, and its competitive efficiencies, are so fine-tuned that no play remains with which to ensure that all productive, full-time workers earn enough to support themselves in a basic existence. Anyone who has dealt with a mid to large-sized company, whether as a customer or an employee, knows that there are all sorts of wasteful inefficiencies throughout such businesses. And if their payments for SSI, Medicaid/Medicare, and Unemployment Insurance–not to mention their corporate taxes–were taken off of their backs, then the minimum wage would be even less onerous. But, ultimately, I believe that a just society owes its law-abiding, productive citizens that much–especially in light of the fact that they now pay citizens not to work–which I oppose. What you subsidize, you get more of.

Zerubbabel

Disingenuous. You did respond to every post and you are quirte interested in defending your own position. There’s nothing wrong with that. It makes you human and not the unbiased objective thinker you pretend to be. Welcome to the world of ideological bias

I wrote that disclaimer, not because I was planning on remaining silent and just watching, but because the first thread I started a while back I felt obliged to answer every reply, even when it wasn’t necessarily addressed to me: Like, welcome to my thread, I’ll be your host this afternoon. I didn’t want to put that same pressure on myself.

And yes, I have been defending my position, when a thoughtful, respectful inquiry or criticism was made. But I definitely haven’t responded to all posts. And I wasn’t trying to pretend to be unbiased either–if by that you mean disinterested in the truth of my assertion. Yet I do think that it is objectively true.

bollocks. Minimum is like God. Either you define it or just get out of the thread and lose the argument instantly.

This is a change of subject - we weren’t discussing the priority of eliminating this versus that public policy. If that’s the discussion, then we can close with what is obviously the single most important policy issue of the day: End the central banking criminal fraud system, legalize competing monies, end legal tender laws and any other laws that protect a nationalized monopoly on the production of money. No other policy issue comes close in importance to this one.

As for the supposed non-importance of MW (“very last thing to go”), I disagree. Even conservative economists will say this from time to time… “well, yeah, MW is a bad idea but it’s not a pressing issue.” But if you’ve traveled to other parts of the world where there is no minimum wage or the minimum wage is extremely low and look at how the internal economy works (i.e. forget “foreign exploitation” of “criminally low wages”), you will see that the abundance of inexpensive labor buttresses a strong and thriving middle class. A good example is India where there is a thriving industry of servants, housekeepers, nannies, tutors and so on. These household industries account for a major portion of the economic activity there. The problem is that these industries are inherently difficult to tax. And that’s one of the functions which the MW performs, eliminating a significant chunk of economic activity which would escape taxation, thus forcing people to choose between idleness or working for a big-box corporate firm where regular deduction of taxes at the source (paystub) is rigidly enforced. The corporate pay department can be thought of as the front-line operational arm of the IRS.

Clayton -

Clayton

This is a change of subject - we weren’t discussing the priority of eliminating this versus that public policy.

My intention was to broaden your perspective on the issue, not to change the subject. The underlying point was that one’s priorities are a reflection of one’s values; and that a blanket insistence that all state interventions must end immediately does not reflect a realistic, or a refined set of priorities, or morality.

legalize competing monies, end legal tender laws and any other laws that protect a nationalized monopoly on the production of money. No other policy issue comes close in importance to this one.

How does one then maintain a fluid exchange of goods and services, without a uniform currency–since using silver and gold, or bartering, would slow things way down; and using homemade money would destroy any objective measure of its value?

A good example is India where there is a thriving industry of servants, housekeepers, nannies, tutors and so on. These household industries account for a major portion of the economic activity there.

You forget that I don’t measure the success of a society by its ability to marginally attenuate the country’s scarce resources among an ever-expanding population. I want the MW to serve as a check upon the kind of rampant overpopulation and resource destruction that one finds in India.

The problem is that these industries are inherently difficult to tax. And that’s one of the functions which the MW performs, eliminating a significant chunk of economic activity which would escape taxation

I’m proposing a system that has no income tax, personal or corporate. For me, the MW has nothing to do with tax revenues.

What imbues this value into goods? Do say. What law of nature that has existed before man and will exist long after dictates that “yes, an hour of work by such and such people is objectively worth $10 at the exchange rate of 2012.”

Wheylous

What imbues this value into goods?

We do, Wheylous. I already told you that ALL values are subjective. You value something this much; I will exchange it for that much, because I don’t value it as much as you do. There is no objective value for anything. But that doesn’t mean that a just society doesn’t place a value on anything. It recognizes, for instance, that life has value, even though we don’t come with price tags attached. And a just society ought to set a minimum value for honest work as well, irrespective of whether some people don’t value it at all.

No taxes required eh? So there will be no fund from which to pay those who would police this system?

Anyway I have to laugh at someone that considers themself above moral reproach when they condemn adults who would consent to capitalists acts of agreeing employment at below some arbitrary rate with prison or death.

How exactly do “we”/“society” place a value on something?

Neither do I. If we ended the government overnight by pushing a Big Red Button (h/t Rothbard), it would certainly be a colossal human tragedy - busted water mains, downed power lines, roving gangs, etc. etc.

But this is not indicative of human nature, this is indicative of the state of atrophy of the market for production of goods and services which the State has monopolized. The answer is simple: liberalization. We did it with parcel delivery and it could be done with many other industries. In fact, there is no industry that could not benefit from liberalization, including security, banking and arbitration, the Holy Trinity of State monopolies.

Liberalization permits private industry to be reinvigorated in the production of the previously monopolized goods and services without creating a human tragedy. The State monopolist will try to cling to life and will continually increase its burden on the taxpayer while delivering less and less services, as the USPS has done. But this matters less and less as consumers are simply able to choose to patronize the private producers instead of the old government monopolist.

The problem of taxation is indeed a social problem. People believe they need to be taxed/enslaved. This emotional attachment to the old system of servitude to a master called “the government” will take time to be discredited and to change people’s minds… but it’s not impossible. The end of chattel slavery also involved upsetting changes to popular opinions and mores but, in the end, the moral side of the argument won out. This trend will continue into the future despite the setbacks of the last century or so, thanks to the so-called “Progressives.”

Clayton -

nirgrahamUK

No taxes required eh? So there will be no fund from which to pay those who would police this system?

Amendment X – No law enacted by electoral initiative or otherwise shall establish a debt, project or fiscal program where the financing thereof would obligate future citizens to the financial commitments of current voters. Appropriations shall be drawn from revenues collected within one year of their appropriation through floating debt and the collection of these fees and revenues only:

Usage fees levied upon persons whose activities degrade or monopolize public property;

Usage fees levied upon persons enjoying exclusive use of land, in proportion to its acreage and the volume, mass and scarcity of natural resources therein;

Usage fees levied upon foreign governments for involvement of United States military personnel, equipment or weaponry in operations outside the territory of the United States, at the request of said governments, which would otherwise be the responsibility of any sovereign nation to itself;

Misusage fees levied upon persons whose activities, whether intentional or negligent, damage public property;

Misusage fees levied upon persons whose activities damage the private property of another person, or impede its exclusive use by barring lawful access to it, or operation of it; physically altering it or its value; or otherwise converting or making improbable its peaceable, lawful, exclusive enjoyment; thereby necessitating the intervention of law enforcement or courts of law;

Misusage fees levied upon persons who assume unnecessary risks or file frivolous complaints that require emergency public services or courts of law;

Sales of forfeited, seized property;

Sales of goods processed or manufactured by state-confined workers; or revenues from the contracting-out of their services;

Sales of government property to allies of the United States, upon a two-thirds majority vote among the Governors and a unanimous vote between the President and the Cabinet—or the Defense Cabinet, in the case of military property;

Duties, imposts and excises;

Safety-inspection and handling charges;

Any fiscal-program income deduction annually re-authorized by electoral initiative.

All fees shall reflect the actual duration and costs of use or misuse, so that collections in anticipation of use may necessitate reimbursement.

No law enacted by precinct electoral initiative shall institute or increase an appropriation from revenues derived in part or in full from another precinct, unless with a fifty-one percent consenting vote within the latter precinct, or unless authorized by this Constitution; nor withhold or disburse revenues lawfully collected for and due to a city, county or state government, or the federal government.

Anyway I have to laugh at someone that considers themself above moral reproach

Who said I consider myself above moral reproach? Don’t answer that. I never said it. I think that no one is above moral reproach.

A)Tldr your whole list of permissible outrages.

B) you wrote

Don’t stomp on my being moral, Clayton, just because we’re all waiting for the big shoe to drop."

Regardless I hope you consider yourself hella-reproached.

Peace-out

I don’t know how I missed this:

You don’t get it. I cringe whenever I post a link to him but Molyneux explains it very well here:

http://www.youtube.com/watch?v=Xbp6umQT58A

The Elites aren’t waiting for anything. The status quo is precisely what they want. The root problem is explained brilliantly here:

Etienne de la Boetie wrote about this centuries ago.

Clayton -

Clayton

If we ended the government overnight by pushing a Big Red Button (h/t Rothbard), it would certainly be a colossal human tragedy - busted water mains, downed power lines, roving gangs, etc. etc

I’m glad to read that you’re aware of the risks.

But this is not indicative of human nature, this is indicative of the state of atrophy of the market for production of goods and services which the State has monopolized

It is human nature. I read the link from your active thread–the story on aircraft carriers; and I noted that the author made this very point as well–that they’re all the same: the Pentagon generals and the Chrysler CEO’s. You can’t escape it: Bad judgment, inefficiency and wastefulness are not exclusive to the public sector.

Mail delivery is a relatively-simple, harmless enterprise. Law enforcement and military defense are not. Is your ideal America one with nothing but private toll roads, by the way? Who pays to fix bridges? Must all public lands then be sold off, parceled out? No more national forests? I agree with liberalizing/privatizing whatever can be done more efficiently in the private sector–and that’s most things–but there are functions of government best left out of the hands of private interests. I know, I know, the private interests are already controlling Congress. That’s why I propose to be rid of it. My system would clarify things quite a bit. Direct democracy is a sort of “liberalization” of political power.

None of us, by the way, is really advocating “pushing the big red button”. If you think we are, then you’re attacking a strawman in place of our actual position.

There’s a difference between simply making mistakes and committing aggression.

Nothing but private roads, yes. I don’t think they’ll all be toll roads.

By the way, I for one am not just concerned with “America” - I’m concerned with the whole world.

Who do you think? The people who own the bridges.

Sold off, parceled out, or left open to homesteading.

If there’s no more nation, there’s no more national forests.

I’d like you to please enumerate these functions and explain why you think they’re best left out of the hands of private interests.