Can Living Wage happen in Free Markets?

Introduction

I am very supportive of a Free Market system, which can be supported by capitalist-right libertarians like myself or by socialist-left anarchists and a type of center-left libertarians called “market socialists“. The reason I am naming different political ideologies across the capitalist-socialist spectrum is because I wanted to give another reply to the Bernie Sanders platform, while not espousing it.

What is a Living Wage?

Living Wage, as far as I can define in my own words, is a wage that allows a full-time worker to afford a generic wooden cabin like the one I stayed in during a camping trip I went on in autumn of 2015, while also affording food, clothes and recreation. Given this definition I can see this being reasonable policy idea on the surface, but there are some principles I must reveal:

  1. Free markets lack intervention by government
  2. Free markets lack monopolies by any corporation
  3. Free markets lack commandments by any religion
  4. Free markets lack any other brand of price-setting monopoly
  5. Free markets allow for wages to be set freely by agreement between workers and employers
  6. Free markets allow for prices to be set freely by agreement between sellers and buyers

Looking at the 5th Principle

So I just said that free market wage policy means letting employer and worker set wages freely by mutual agreement. This is no conclusion, but rather I suspect this is true because of how prices are set and because of the fact that profits are the things that guarantee wages. Economically prices determine profits and profits determine wages and wages often determine prices. Basic cycle I suspect of being real based on my scientific logic. I do not know this, and the same source of my logic, science, forbids me from pretending to know everything, that is why I do not confirm this as true without having looked deeper into it yet.

However, I am willing to say that a Living Wage is possible in a Free Market if… we have a law that says employers and workers need to calmly and rationally discuss what kind of wage is reasonable for:

  • What the worker’s job is
  • Whether that job is entry level or PhD level or some level in between
  • What lifestyle the worker desires as an individual
  • Whether the worker’s individual lifestyle makes sense for entry-level vs PhD level
  • If the employer can afford to pay the wage arrived at
  • What items or services the worker actually had a hand in providing
  • What kind of personal life expenses the worker has
  • What kind of personal life expenses the employer has
  • How the worker plans to get around

And that says police may only intervene if one conducts a violent crime or property crime against the other.

Conclusion

Well… I suspect I have been clear about what a Free Market Living Wage could be. So, thank you all for learning,

~LDA

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s