Cubedramirez said:
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Mr Khan said:
If there's higher productivity, there is more wealth to be shared, and that wealth should be shared decently evenly. The insane gaps between an entry-level worker and company CEO's are unconscionable, and undefendable.
McDonald's themselves demonstrated that their wages are indefensible, as they do not provide a living wage.
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Well, now that I have an understanding on how you view/understand economics and business I can appropriately address this situation.
1. Employers don't hire people as a favor. Businesses exist to make money for their owners. If hiring a person is worthwhile said person must produce more than they are paid. If they cannot, they will no longer have a job. Now of course a business has the ability to raise wages but it cannot do this in a vacuum, hence it must raise the price of their product which in the fast food market where low cost and accessibility reign king would drive away customers. What happens to those jobs once business dries up? The answer is obvious if you're being intellectually honest.
2. Wages are not set by picking numbers out of thin air. Set them to high compared to the value created/produced and the business vanishes. Set them too low and workers look for alternatives. So, if your true intention is to help people then instead of focusing on the juvenile aspect of wages (which is quite a liniar and generic cause that is used often to rile up uneducated and emotional people) we must focus on those alternatives and answer what and who is responsible for the limiting of alternatives. That is an easy one to answer but I am not getting paid to give a social-economic class here.
It’s both the easy and extremely difficult solution that, though I may very well be incorrect, assumes people like you would completely disagree with. It involves removing the barriers that the state imposes on business creation and removing the legal defenses that the State has granted large businesses to avoid competition. Once you do that you would see what we saw in the automotive industry during its heyday in the early 1900's. What's the invigorating idea is that we have so many more industries today, much wider range of technologies and markets to reach that potentially we can see that explosive nature multiplied.
That increase would require a LOT of new talent and workers across all skill levels; Increased quality of life, increased personal income, traditionally entry level jobs fulfilling their purpose of training youth on how to conduct themselves in a work environment, and giving everyone plenty of alternatives and choices.
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Value produced, as you said. The value produced by these employees is higher than it was in the past, never mind that they are not personally responsible for the higher productivity. If they produce more value, they are worth more.
