Adam Smith's soft side - Page 3

Brainpolice · 03-24-2008, 08:14 PM

Quote:

Originally Posted by Malkavian

Guilty as charged

Yay!

ppatt · 03-30-2008, 06:47 PM

Quote:

Originally Posted by anhailla

Imo...decent means a wage that one can support themselves on.
food, clothing, shelter, healthcare, transportation...etc,
now ideally...a "worker" will make enough of a wage to also have "capital" to spend in a supposed "capitalist" society

wasn't that the whole idea?

we could start there anyhow.

It is plain enough to those willing to grasp the spirit or arguments rather than splitting hairs. I suppose "decent wage" for some is what they would have for others and not themselves.

As I witness those with formulas for others they seem to be satisfied with I'm struck with how bad for business this really is.

Brainpolice · 03-30-2008, 10:22 PM

Well "decent wage" does seem to be a bit of an arbitrary term, and it begs the question of who exactly will and can determine for us exactly what a "decent wage" is. What great all-knowing soothsayer has the ability to determine exactly what is optimal for everyone? And how does this relate to the actual desires of the people? What if they conflict? What if your definition of "decent wage" isn't enough for Jack? Or what if it's generous to a fault? How does one determine a uniform optimum given the vast diversity in human desires?

Furthermore, one must take dynamics into account, I.E. there is no single static number that can sustainably function as a perpetual policy. A "decent wage" today may be a "crappy wage" or a "rich man's wage" tomorrow, or as compared between the conditions of different geographical areas. Given that economies are dynamic, I don't see how any attempt to impose a singular standard is going to be sustainable. This is a problem with all attempts at central planning and the imposition of uniform standards. They become obsolete and illogical over time.

Okay, so let's suppose we determine a uniform "decent wage" for everyone and impose it as a standard. Effectively, this is an attempt at establishing a static condition in a dynamic system. What do you think will happen as conditions change over time? Well, this "decent wage" will soon lead to either a shortage or a surplus - as all attempts at price fixing do. If it is too high in light of changing conditions, it will lead to a shortage. If it is too low in light of changing conditions, it will lead to a surplus. If one does not leave the process alone to adjust itself, one merely creates calculational chaos and prolongs the problem (and creates new ones). All hail the cycle of interventionism!

03-30-2008, 10:22 PM	#23 (permalink)
Brainpolice Free Market Anarchist Join Date: Aug 2007 Location: Euclid, Ohio Posts: 378 My Mood: Thanks: 2 Thanked 0 Times in 0 Posts	Well "decent wage" does seem to be a bit of an arbitrary term, and it begs the question of who exactly will and can determine for us exactly what a "decent wage" is. What great all-knowing soothsayer has the ability to determine exactly what is optimal for everyone? And how does this relate to the actual desires of the people? What if they conflict? What if your definition of "decent wage" isn't enough for Jack? Or what if it's generous to a fault? How does one determine a uniform optimum given the vast diversity in human desires? Furthermore, one must take dynamics into account, I.E. there is no single static number that can sustainably function as a perpetual policy. A "decent wage" today may be a "crappy wage" or a "rich man's wage" tomorrow, or as compared between the conditions of different geographical areas. Given that economies are dynamic, I don't see how any attempt to impose a singular standard is going to be sustainable. This is a problem with all attempts at central planning and the imposition of uniform standards. They become obsolete and illogical over time. Okay, so let's suppose we determine a uniform "decent wage" for everyone and impose it as a standard. Effectively, this is an attempt at establishing a static condition in a dynamic system. What do you think will happen as conditions change over time? Well, this "decent wage" will soon lead to either a shortage or a surplus - as all attempts at price fixing do. If it is too high in light of changing conditions, it will lead to a shortage. If it is too low in light of changing conditions, it will lead to a surplus. If one does not leave the process alone to adjust itself, one merely creates calculational chaos and prolongs the problem (and creates new ones). All hail the cycle of interventionism! __________________ http://mises.com/blogs/brainpolice/
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