Impossible to re-establish a solid middle class in the USA...

Discussion in 'Political Opinions & Beliefs' started by OldManOnFire, Sep 28, 2015.

  1. Belch

    Belch Well-Known Member

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    I think the point is that a business owner owns the business, and the employee doesn't.

    Does an employee who has merely worked for a salary have anything invested in the business? Nope.
     
  2. Meta777

    Meta777 Moderator Staff Member

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    Employees invest their time and energy/effort into a company. They are compensated for that time and energy based on the markets,
    but I think the real question is whether or not that compensation is actually comparable to the wealth created for the company as a result of that time and energy.

    -Meta
     
  3. Longshot

    Longshot Well-Known Member

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    Employees are compensated for the service they provide. If they are unhappy with the money they earn, they should consider going into a different business.
     
  4. Belch

    Belch Well-Known Member

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    Sometimes it is, and sometimes it isn't. Let's leave that decision up to the people involved in that particular transaction, shall we?
     
  5. Meta777

    Meta777 Moderator Staff Member

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    If you're implying we shouldn't mandate wages, then I agree.
    But I will say it points to a serious problem in our economy, when compensation averages far below the wealth produced.
    My belief though is that mandating wages is not necessary to solve the underlying issues,...we must but simply
    use the laws of supply and demand to our advantage, hire the surplus labor force to fill the excess needs,
    and through normal market forces the rest of the economy will tend to fix itself.

    -Meta
     
  6. Longshot

    Longshot Well-Known Member

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    I don't see the underlying issue. If one is unsatisfied with the revenue he earns by providing service A, then he should find another line of business.
     
  7. Belch

    Belch Well-Known Member

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    That's the same argument that people use whenever feminists try to say that women are being underpaid. Hey, if you think there's a goldmine in them hills, then have at it! Employ all of those underpaid workers and make some money.

    The reason why this isn't working in the real world is that they really aren't being underpaid. Neither the minimum wagers or the women. There is no gold in them thar hills. Just a lot of hot air.
     
  8. Meta777

    Meta777 Moderator Staff Member

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    The issue, is that the under-compensation is occurring across the board, not just in isolated job segments.
    At any given level of performance, employees on average are being under-compensated, so if an employee leaves one job,
    chances are that any job they go to will under-compensate just as much.....and that's if they can even get a job.

    I'm happy to say that the unemployment numbers have been steadily improving over the last couple of years,
    but we should still keep in mind that for most jobs there are more often than not several qualified candidates for every job opening.
    Individuals can of course improve their chances by gaining more skills and education, but more people becoming more qualified
    is not necessarily going to increase the number of job openings,...instead, there will always be some qualified candidates
    who get left out in the cold, and those who do win out will simply be even more under-compensated as compared to the value they bring.

    Again, I don't think mandating wages is the way to fix this. More/stronger unions may help in some areas,
    but it isn't full proof and it does come with it own unique set of issues in my opinion.
    Really....the only sure fire way to get the market for labor to auto-correct, is to soak up all that excess idle labor.

    Wha?? How is that the same argument that...? I think you may have misunderstood what I was saying.
    I'm saying that if the government employs those who are currently unemployed (and it doesn't have to be at some super high wage, it can be tied to prevailing market wages)
    then the market wage will natural equalize towards a just compensation based on the laws of supply and demand.

    -Meta
     
  9. Longshot

    Longshot Well-Known Member

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    I see. So people don't feel that they are being compensated adequately for the service they provide. Then why don't they provide a more remunerative service, or find other customers for their service?
     
  10. Belch

    Belch Well-Known Member

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    You didn't mention the government employing these guys. Isn't the government debt big enough as it is? And you want to add more people to the government dole?

    Sorry, but what you're trying to do is create an employment bubble, which the government has done enough of as it is. You need to fire at least half of those overpaid civil servants they've got now which would mean their salaries don't have to be paid with taxes/inflation. That gives people more money to invest in businesses which will hire them.
     
  11. Meta777

    Meta777 Moderator Staff Member

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    I've said it before, but I'll say it again.....for tangible wealth to be created by humans requires two things:
    a) labor (physical work, mental work, etc. etc.), and
    b) preexisting wealth (raw resources, intermediate resources, space, mediums, etc.)

    If those with the wealth (the resources, the venues etc.) are all under-compensating employees,
    then those without wealth have no choice but to either accept such under-compensation,
    or not be compensated at all,...stuck with a labor potential they can do nothing with.

    In an ideal economy, competition for good labor would force those with the wealth to adequately compensate their employees.
    This however does not work so well when there is a surplus labor force, as without access to the natural resources themselves,
    they become reliant upon those who control them in order to support themselves, while with a high availability of options the wealth owners are not likewise reliant, giving them all the leverage.

    < And why compensate someone in proportion to the value they give me, when disproportionate competition and the threat of death makes them willing to work for peanuts >​

    I think you misunderstand again. The government employing people to do a job is not "adding people to the government dole".
    And I'm not suggesting increasing the debt either. Instead, I suggest the vast majority of the costs be offset by charging a fee for making use of the product of such work.
    A smaller portion should come from those at the very top of the wealth scale, whom benefit the most from the exclusive control over resources, that we, society as a whole, grant them.

    -Meta
     
  12. Belch

    Belch Well-Known Member

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    I view all government officials as being on the dole. Without me paying taxes, they don't get a salary. Their entire business (i.e. the government) is a losing proposition as far as making a profit goes. The only way I can pay taxes that pay their salaries is if I make a profit. Then I turn around and hand it off to some government desk jockey so he can throw it away on some stupid government program that does the exact opposite of what the program is supposed to achieve?

    That said, I think your idea could be useful for paying for prisoners. All of those guys sitting around in prisons coming up with new ways for the fresh fish to toss a salad are being wasted! Put those guys to work building their own prison! They can grow their own food, pay for their own guards, and put a bunch of exercise bicycles mounted to electrical generators on each cell block just in case the guards need some light to do a head count.

    Well as long as they don't do what the government normally does, which is to make it illegal for anybody to compete with them, than sure. Hire all those guys down at the park eating free sandwiches they got from the religious people and put them to work, if they want, making stuff.

    I have no idea what you could get them to do, and nobody else does either, which is why they're unemployed. But if you can figure that one out, and make sure that none of the expenses get shlepped off on Joe Taxpayer, then sure.
     
  13. Longshot

    Longshot Well-Known Member

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    Yes, this is known. Land, labor, and capital. The factors or production.

    Many businesses rely almost entirely on one's labor. Some require only minimal other factors. If a person is unsatisfied with the revenue he derives from his current activities, then he should probably think of going into a different line of business, one in which he will be more adequately compensated.
     
  14. Iriemon

    Iriemon Well-Known Member Past Donor

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    When limited available jobs also under compensate, its may not an option or an option that matters.

    If there are better paying jobs available, they would be taken.
     
  15. Longshot

    Longshot Well-Known Member

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    If being employed providing a particular service to a particular employer is not satisfactory, he could opt to provide a different service to that employer or some other employer. Or he could produce something of value and sell it to consumers, i.e. go into business for himself.
     
  16. Iriemon

    Iriemon Well-Known Member Past Donor

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    If true, so what?

    Businesses.

    Unions had a time and place, when the middle class shared in the prosperity they helped create.

    It's time to stop pampering the rich, focus on our middle classes, and reverse trickle down.
     
  17. Iriemon

    Iriemon Well-Known Member Past Donor

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    Of course they do. If the company does poorly, the first ones to feel the pain are the workers who lose their jobs and money to provide for their families.
     
  18. Bluesguy

    Bluesguy Well-Known Member Donor

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    No they don't and can walk away any time they so please. Employees are an expense, when you are an expenses you are subject to being cut. Let me know when employees are required to mortgage their home to meet next weeks payroll, THAT is being invested in the business.
     
  19. Bluesguy

    Bluesguy Well-Known Member Donor

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    Who or what decides what is over or under compensation?

    Then how come factory after factory I go to can't fill good paying jobs?
     
  20. Iriemon

    Iriemon Well-Known Member Past Donor

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    History

    People can say anything on the internet.
     
  21. Slant Eyed Pirate

    Slant Eyed Pirate New Member

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    I started working at 10 in my parents Take Out Restaurant. Sweeping, mopping, stocking the soda machines, baggin orders, working the Fryers, making dumplings and wontons.
    My parents are from Mainland China, who barely spoke any English.
    My Dad was in the store from 10 am til closing time which was 10 - 11 pm. We were open 7 days a week, 363 days a year. We closed for Thanksgiving Day and Christmas.
    My brothers and sister had to postpone High School to help out at the restaurant. I was lucky to finish high school. Almost didn't go to College if not because I was a complete Nerd and got straight A's, got into AP Science/Math classes, getting Scholarship for University.
    My brothers never went to College, my sister Completed her degree late.
    My father never had to beg anyone for money. My brothers both own their businesses today, and are providing for their families.
    I've never seen An Asian or a Latino with his hand out asking for spare change on the streets.
    Every American city I've been to its been some White or Black hobo asking for a handout. I used to give to these people, but I'm tired of helping these deadbeats.
     
  22. Belch

    Belch Well-Known Member

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    So what? The pain of the unemployed is not connected to a previous employer. The last job I got fired from from was the opposite. The place went out of business and the owners were out a ton. I went from that job, straight into the one I have kept for the last two decades.

    If this place goes under, I'm stuck with looking for a new job, but it's not like anybody is owed anything. I can, and might, walk away from this job if I get a better offer. They can, and hopefully won't fire me to get a better employer.

    It's a mutual agreement that works to the benefit of both. Nobody is owed anything, and nobody's pain is the responsibility of the other.
     
  23. Meta777

    Meta777 Moderator Staff Member

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    That's not what "the dole" actually means,...but OK......yeah,
    I always say that its definitely better to pay folks to do something productive than it is to pay them to do nothing.
    I also think that that should extend beyond just prisoners. All those people collecting unemployment, food stamps, etc.
    We should be giving them jobs that pay the bills. There's plenty of work to be done, and I don't see why that has to involve mandating monopoly.

    -Meta
     
  24. Meta777

    Meta777 Moderator Staff Member

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    Like I said, there may be a few special cases, but on average it doesn't matter where one goes because the entire labor market is so saturated across the board.
    It may be possible to improve one's personal circumstances relative to where they were, but actually getting paid a wage proportional to the value one
    provides to a company isn't likely in our current economy, regardless of where one moves to.

    The other alternative of course is not to work for any company, but to provide goods and services directly to the public.
    But because, as we agreed, tangible wealth requires labor and land/capital/resources,
    this of course isn't possible for those without their own independent access to such land/capital/resources.

    -Meta
     
  25. Meta777

    Meta777 Moderator Staff Member

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    I believe the markets are a perfectly good way to arrive at fair compensation,...but only under a certain set of circumstances,
    namely...circumstances in which buyers and sellers of labor on average enter deal negotiations with relatively similar stakes.
    I.e. there can't be factors involved which give one party significantly more leverage over the other in the deal,
    because such increases the chances of an unfair deal skewed in favor of the party with the leverage.

    Such differences in leverage do not necessarily lead to an unfair deal, but in general the following factors
    ensure that the parties without the leverage aren't forced into accepting such unfair deals despite the unfairness.

    1. Both parties should have accurate knowledge regarding the details of the deal.
    2. Neither party should need the deal significantly more than the other.
    3. Neither party should fear the consequences of not taking the deal more than the other.

    -Meta
     

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