$15 minimum wage, the tip of the iceberg
THE $15 MINIMUM WAGE and a
HUMAN CENTERED ECONOMIC SYSTEM
Republicans say that raising the minimum wage to $15 will cost jobs because businesses will be more incentivized to automate, install AI, etc. They also say that some small businesses do not make enough money to be able to pay $15/hr and stay in business.
They are correct
Democrats say that work should pay, that if people are working they should be able to make enough money to live on and that the current minimum wage has not been raised in many years even though profits for business have exploded. They point to big businesses such as Walmart, where the owners and executives are making very large amounts of money and the workers are still just getting minimum. They say this is morally wrong and that fairness demands a livable minimum wage.
They are correct
So how do we reconcile this?
Maybe we look need to look at the fundamental principles of our economic system, the rules of the game so to speak. How do wages get set, how do prices get set.
The first question is:
Many believe that the market should be allowed to find its own levels, regardless of the fact that those with money have the power to set wages and prices in a situation where people have no choice. Some say that people can just refuse to take a job at low wages or an apartment at a high price, but at some point people simply have to take what is available, meaning what the wealthy owners have dictated. Regardless, many believe that interfering with the process is inviting disaster and that owners of businesses should be allowed to do whatever they want without regard for the social consequences.
Or: do we believe that the rules of the game should be set up so that the people of the society can live a decent life if they do their part. Do we believe that government has a part to play in this. . Do we accept a society of people working 60 hours a week just to stay alive or do we work for a society of people working regular jobs and having time to spend with their family and friends.
Of course many call it socialism the moment one talks about having any vision for society.
We fully accept that business is there to make money for the owners. There is absolutely nothing about employees or any responsibility to society or anything about consequences to the society of business decisions.
It is in the financial interests of the owners to maximize profits by keeping labor costs as law as possible. Offshoring jobs, automation, AI, fighting unionization, etc. are logical consequences.
By this logic we should not even have a minimum wage in order to be able to compete for jobs with other countries. Of course prices, especially for housing, are far far higher in this country than in many of the country's businesses go to for low wages.
But what about the workers of American society? The old song goes "i'm taking what they're giving cause I'm working for a living". That also applies to housing and medical care.
Maybe we need to start seriously talking about prices as well as wages and having some limits on prices for basic human needs such as housing. Not necessarily going to socialism, which has all its own problems, but having a human-centric capitalism such as Andrew Yang talks about, where people can survive and have a decent living even if they're cleaning toilets.
The reality is that we do not have a level playing field between workers and owners, renters and landlords, that there are many hidden subsidies, loopholes and tax breaks for the wealthy which increase their power. Many of these breaks were put in there because of bribery of the government by the wealthy in the form of "campaign finance contributions". Of course the main power is the old phrase that possession is 9/10 of the law". They have the job, the house and the medical care and if you want it you have to take it on their terms.
Essentially people have a gun to their heads put there by the owners saying "take the job at whatever wages I'm paying and take the apartment at whatever price I want to charge".
There is no free market.
Minimum wage is only the tip of the iceberg. We really need to start talking about the fundamental rules of the game.