Message from @hcaez
Discord ID: 533740941891207179
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
but what if that other market also wants to seek higher profit margins and does the same thing
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
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
Families need to have more than 3 jobs to survive now it’s sad
They would if dumbass Keyneisans let deflation happen
but of course not
oh in their data hong kong is #1
yea
but plenty of cheap products come from there that are made with low wages
Hong Kong has one of the highest incomes in the world
not to mention there is a min wage