Message from @hcaez
Discord ID: 533739469283786755
I like this server I get to actually learn about shit
I would also like to abolish min wage, but I know that can't happen
if it were abolished, then yes the free market would determine the wage, but for low skill labor such as being a stocker at a grocery store, you wouldn't be paid well at all
most people don't have the skills to find well paying jobs, and if they did, there would be mass shortages
You would be paid well
the market level would be a well paid job for that skill, and the market would just reallocate jobs
paid well for stocking shelves?
how much would you pay someone to do that
To keep employees yes, as firms compete for labour
but for a low skill job, you don't need to pay competitive wages
a lot of people can replace the guy going out because you don't need a skill
Easier than it sounds
You do or you won't get employees
well those people who reject the opportunity to work, what happens to them? they can't live off 0 income
Why would you reject the opportunity to work
that isn't an excuse to use other peoples money
But there are chruches, private charities etc
`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
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
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