Originally Posted by Tyburn
How about they just pay everyone what they are actually worth?
I'm not saying reduce the bankers pay, I'm saying increase the wage on manual labourers...where would you be without the person who actually stocked, or ordered, the stuff you buy from the supermarket?
unless you grow your own and can be entirely selfsufficent, then you relay on those people. that makes them worth more.
Well, that doesn't really work in the real world, because how do you determine what an individual is worth and who makes that determination?
In a capitalist system, the manual laborer's work ethic, expertise and integrity is what determines how much he gets paid. The system is designed to promote good workers above bad workers.
If a good worker is paid too little, then he will likely move elsewhere for a better job or go into business for himself. If a bad worker is paid too much, then his employers lose money or, in the case of the self-employed, word of mouth from dissatisfied customers will prevent him from getting further work.
So honesty, knowledge, and work ethic are what determine who is worth what in the free market.
In a government run system or unionized job field, bad workers are paid just as much as good workers and companies lose money, forcing lay-offs or bankruptcy, thus increasing the unemployment rate. When the government steps in and raises the minimum wage, it crushes small businesses. Because a small "mom and pop" store, that may only be able to afford 3 employees, will suddenly only be able to afford 2 employees. So raising minimum wage increases unemployment. Many claim that higher minimum wages help people who work for big corporations, but most of those companies pay above minimum wage salaries anyway.
Let's say you need a plumber to repair all of the old pipes in your home. A unionized or government run system would be working under the assumption that all plumbers are created equal. However, anyone who has actually hired a plumber knows for a fact that that is NOT the case. Some might be so inept or inexperienced that they actually do more damage to your home. A free market system is designed to root out the bad and promote the good. Is the system perfect? Not at all, but it is much better than the alternative.