LINE OF THE DAY, part XL

from Fert Bert commenting on this article from Mish's Global Economic Trend Analysis blog:

"If $15 an hour is better than $5, why isn't $1500/ hour better?"

I get so tired of that MORONIC ARGUMENT!

One:

There should be no "minimum wage". There should be an "exploitation wage"...a dollar amount where you flip from employing someone to exploiting them...what that amount is up for debate..$1 is definitely exploitation...$1500 is rightwingnut propaganda.

TWO:

"The primary concern of the employer is to make enough profit to stay in business."

YES

BUT

Should they be allowed to "maximize profit" by shifting a large chunk of the true cost of labor onto the backs of taxpayers?

Should businesses be allowed to use the welfare system to supplement wages and provide benefits like healthcare AT TAXPAYER EXPENSE?

Yes, yes, I know, eliminate the welfare system...if you can't see how that would work out, then you're hopeless and please don't bother replying to my post.

Oh, and yeah, welfare system is bloated, can definitely use some trimming, but never a total elimination; again if you can't see why, then don't bother posting.

     I like the idea of changing the relatively benign term "minimum wage" into the politically charged "exploitation wage". It would certainly make talking about it more fun. I'm also aware that the actual amount of wages is not nearly as important as how much those wages can buy. $50/hr. does one no good if a 12 oz. can of corn costs $11.95.

     I also feel there is merit to introducing morality into capitalism. The amoral system used now, profits/shareholder value above all has led us to the soulless economic world about us. If humans are supposed to behave ethically and morally, why not a business concern as well?
     And if it is not the place of business to provide a living wage, then it must be that of the government via a basic income guarantee. Perhaps that's where we are headed though for the life of me, I cannot imagine how such a system would pay for itself but it would take the concept of "minimum wage" off the table seeing as how if the American government provides a basic income guarantee, than a business may pay for labor whatever it is able to command even if it were only a few cents per hour.

     A different commenter also suggested that while he supports free trade, he believes such trade should be limited to countries playing by our labor rules. For those countries that do not, their products may still be imported into the United States, but with some "friction" in the form of tariffs.
      I also agree with that. Without such, dare I say "protectionism" via tariff, in place, one creates a "race to the bottom" mentality with business because a morally sound business will always be undercut by a morally unsound business who in turn will be undercut by a morally bankrupt business.
     There's no incentive to do the right thing if doing the wrong thing is also rewarded.