Message from @hcaez
Discord ID: 533740407809638421
`You do or you won't get employees`
I mean theres not alot of people doing that job as you may think
Firms would still have to compete
are you saying that if a firm were to pay non competetive wages, that they would not get employees?
Not as many as needed, no
in a free market
well where would those people don't want to work at that firm due its low wages go?
No it shouldn’t lol that would just make more people reliant on gov benefits
in a perfectly competitive market, without government intervention, collusion between firms would prevent that sort of competetion
What do you mean?
Firms would not collude
or the market would simply reallocate the jobs
And they end up in a worse problem
but the firms are the market, if they cut their variable costs by colluding and all setting a similar low wage, why wouldnt they?
Firms =/= market
there's no government to stop them, only other firms who would lose profit by doing that
by the market i mean market forces
Because the market would reallocate jobs
where?
to another market
Reallocation and shortages
it's like price controls
Set a max price below the market level, you get shortages
same works with wages
hm but those shortages can't last indefinitely, people need money, so they will eventually settle for the low paying job because thats all they have
thats what happened in China over a decade ago
No the market will have to readjust
people work for cents per day
China was never capitalist
and still isn't
it's an unfree market today
okay what about all the other countries that have cheap labor
cambodia
Still
unfree
free market, but low wages
not even close
Search for cambodia
People can’t survive right now with 8 an hour