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Corporate Moochers - how to spot them

... can you answer two questions?

(a) How much money do you think a "living wage" is?

I do not have a number. I would want decisions to be made that are frequently adjusted and kept up with locality and the times. Those equations would need to include certain basic values: decent safe housing, decent safe food and decent safe healthcare. Currently that amount is calculated to be, "whatever keeps you off of public assistance," because at that point the corporation is no longer skimming public funds to keep their workforce alive and, as Canard so succinctly explains, healthy enough to not harm the public shopping at your store.

I don't have a magic number, but we can figure it out.

(b) In the centuries before government tried to make sure everybody got enough to eat, did the companies that were able to stay in business pay all their employees that much (adjusted for inflation)?

Oh certainly not. Some of their employees were allowed to starve to death, they were allowed to leave their toddlers without supervision, they were allowed to die of treatable diseases, they were allowed to bring those diseases to the workplace. They were allowed to be killed on the job from preventable "accidents," verily, even burned to death before leaping out of 3rd floor windows.

Indeed, companies were able to stay in business through a callous disregard for their employees' lives and health. many of them moaned about the horrible new regulations that kept them from being profitable, like not being able to use children and the like.

I'm not sure why you made this comparison if you don't want to compare the practices that comprise the answer to your question.

Yes, of course prior to the minimum wage they were able to make loads and loads of money in various ways, including wages so low that people could not survive on them. But there were lots of starving people for whom the option to starve somewhat more slowly was always worth taking.


Now, however, we've made a sort of a social compact that we want to live in a world where we are not surrounded by starving people and maimed children. For years that worked with new regulations and a minimum wage - on which you could actually support a (small) family. But since forces have succeeded in making the minimum wage less and less as inflation has increased profits and higher salaries but not minimum wage, the "safety net" programs have had to cover more and more people.

You deny a connection between the forces that have kept minimum wage from growing with productivity and inflation, and with the corporations who are deliberately and willingly asking the public to pay for the gap, while simultaneously fomenting outrage about the "size of the entitlement programs." I believe you are wrong to think they are not exactly the same players, doing it on purpose to make a gain off of other people's pockets. I believe they want absolutely nothing less than the return to the times when choosing a job was not about getting a good fit and a productive life, but back to when choosing a job (and hence choosing to let good people leave it) was about whether your child woke up the next morning or not.


to answer your later clarification, wherein bomb20 does not see that it is mooching to rely on public assistance to provide a level of employee health (via nutrition, healthcare and housing) that is nevertheless exploited by the employer for profit, I direct you to Canard's answer just above. The employer is getting something that was paid by the taxpayers. Fed, housed and healthy workers. Without that taxpayer contribution, these people would not be what the employer wants to hire. Hence, they are trying to exploit the value that taxpayers have added, to line their own pockets. That is why it is not "stupid" to make the connection to moochers. That is how you recognize them.
 
I have a really really large problem with a company making profits - huge profits - while requiring aid from welfare to keep their employees alive.

You are starting with the assumption that the company is responsible for the living expenses and general welfare of the employees, as if they were the company's responsibility to support, as if they were the company's children.

The companies don't see it that way. They see a contract of employment as a contract for services. They negotiate the lowest price they can for the best service they can get for that money. When you contract with your cell phone company for a cheaper rate, you don't feel responsible if the company doesn't make enough off of you and has to go bankrupt or restructure. They see their employees similarly.

They may increase wages if it gets them better employees, and often this is the case (you want a workforce that is happy and healthy because they are more productive) but they see themselves as having no inherent responsibility to pay any more than they are required to by contract or by law (that's where minimum wage comes in). On the flipside, they should have no right to force their employees to work just for them and have no other income.

Exactly. This is the fundamental issue--whether business is responsible for welfare or not. As far as I'm concerned welfare is the government's job, attempts to push it onto business are simply attempts to get it off the books.

No business of any size, much less the big ones, can survive without government welfare. Whether it is transportation infrastructure, the entire huge government paid legal system which keeps other businesses honest, or the tax subsidies for even THINKING about re-locating, businesses are, I think, far more dependent upon government and it's handouts and services than are individuals.

They are the real takers in our society. And they do not fairly share the profits with their employees and the taxpayers without whom they could not live.

While I do not think we should end corporate welfare, we must certainly identify it for what it is and hold business to their end of the bargain; do everything they can to hire us and pay those whom they do hire enough so that they do not add to the burden already imposed on us by these businesses. Otherwise, they should be fined, sanctioned, whatever. If you want the benefit of our system and our infrastructure and our markets, you must behave in an economically just way.
 
I do not have a number. I would want decisions to be made that are frequently adjusted and kept up with locality and the times. Those equations would need to include certain basic values: decent safe housing, decent safe food and decent safe healthcare. Currently that amount is calculated to be, "whatever keeps you off of public assistance," because at that point the corporation is no longer skimming public funds to keep their workforce alive and, as Canard so succinctly explains, healthy enough to not harm the public shopping at your store.

I don't have a magic number, but we can figure it out.

(b) In the centuries before government tried to make sure everybody got enough to eat, did the companies that were able to stay in business pay all their employees that much (adjusted for inflation)?

Oh certainly not. Some of their employees were allowed to starve to death, they were allowed to leave their toddlers without supervision, they were allowed to die of treatable diseases, they were allowed to bring those diseases to the workplace. They were allowed to be killed on the job from preventable "accidents," verily, even burned to death before leaping out of 3rd floor windows.

Indeed, companies were able to stay in business through a callous disregard for their employees' lives and health. many of them moaned about the horrible new regulations that kept them from being profitable, like not being able to use children and the like.

I'm not sure why you made this comparison if you don't want to compare the practices that comprise the answer to your question.

Yes, of course prior to the minimum wage they were able to make loads and loads of money in various ways, including wages so low that people could not survive on them. But there were lots of starving people for whom the option to starve somewhat more slowly was always worth taking.


Now, however, we've made a sort of a social compact that we want to live in a world where we are not surrounded by starving people and maimed children. For years that worked with new regulations and a minimum wage - on which you could actually support a (small) family. But since forces have succeeded in making the minimum wage less and less as inflation has increased profits and higher salaries but not minimum wage, the "safety net" programs have had to cover more and more people.

You deny a connection between the forces that have kept minimum wage from growing with productivity and inflation, and with the corporations who are deliberately and willingly asking the public to pay for the gap, while simultaneously fomenting outrage about the "size of the entitlement programs." I believe you are wrong to think they are not exactly the same players, doing it on purpose to make a gain off of other people's pockets. I believe they want absolutely nothing less than the return to the times when choosing a job was not about getting a good fit and a productive life, but back to when choosing a job (and hence choosing to let good people leave it) was about whether your child woke up the next morning or not.


to answer your later clarification, wherein bomb20 does not see that it is mooching to rely on public assistance to provide a level of employee health (via nutrition, healthcare and housing) that is nevertheless exploited by the employer for profit, I direct you to Canard's answer just above. The employer is getting something that was paid by the taxpayers. Fed, housed and healthy workers. Without that taxpayer contribution, these people would not be what the employer wants to hire. Hence, they are trying to exploit the value that taxpayers have added, to line their own pockets. That is why it is not "stupid" to make the connection to moochers. That is how you recognize them.

Can't rep you again but wanted to. Excellent post.
 
No business of any size, much less the big ones, can survive without government welfare. Whether it is transportation infrastructure, the entire huge government paid legal system which keeps other businesses honest, or the tax subsidies for even THINKING about re-locating, businesses are, I think, far more dependent upon government and it's handouts and services than are individuals.

Transportation infrastructure--mostly paid for by fuel taxes. Businesses *PAY* for that infrastructure, they don't get it for free.

Legal system--in the civil legal system you pay. Again, not free.

Tax subsidies I will agree with--but that's small potatoes overall.

They are the real takers in our society. And they do not fairly share the profits with their employees and the taxpayers without whom they could not live.

Then where are the extra profits?? Any publicly traded company has to report how much they made--and they're not going through the roof. A few companies are making out well, not business as a whole.
 
Transportation infrastructure--mostly paid for by fuel taxes. Businesses *PAY* for that infrastructure, they don't get it for free.

Bullshit. Absolutely completely incorrect.
Look at the budget for any municipality. Town, village, county, state, city, hamlet. Compare the budgeted items for road repair, maintenance and improvement, bridges and traffic control devices. Then look at the revenue line for gasoline tax. It is about 1/3 of the amount needed. The other 2/3 comes from the individual taxpayers.

You are absolutely utterly wrong.

Legal system--in the civil legal system you pay. Again, not free.

Absolutely utterly wrong. Most municipalities do not have the justice court as a profit center. the few that do (google speed trap revenue) are egregious jerks.

Tax subsidies I will agree with--but that's small potatoes overall.

Not to the taxpayers, it's not.

Then where are the extra profits?? Any publicly traded company has to report how much they made--and they're not going through the roof.


Seriously? record high salaries for CEO, board and top executives?
 
Arcadia,

Your argument is more for corporate taxation than for raising the minimum wage.

There are plenty of corporations that enjoy the same benefits of society but hire very few employees. Replace employees with machines and you get away from "living wage" issues. I really don't see a basis for such discrimination. All I can see it doing is discouraging the hiring of people, and costing jobs.

If companies are making record breaking profits because they have the opportunity to operate in lucrative places that afford them advantages like superior transportation, communication, educated and healthy populace, consumer base, etc, they should be paying their fair share into taxes.

Why should selling your labour to a company be so different from selling any other service to a company? If you can't get by on the amount being offered, don't take the job. If there are no jobs you can survive on, go into work for yourself. If you can't get by on your own, that is what social safety nets are for. If they are insufficient to keep people healthy and fed, then improve them.

I say we should band together as a society and have guaranteed minimum income for all, paid by each other's taxes, including the taxes of these companies. Why should companies who hire large numbers of employees exclusively foot the bill for the health and welfare of society? Why should the idle rich or companies who hire few or no employees get away without contributing their share?
 
I do not have a number. I would want decisions to be made that are frequently adjusted and kept up with locality and the times. Those equations would need to include certain basic values: decent safe housing, decent safe food and decent safe healthcare.
Therefore, if one were interested in truth in advertising, one would call that a "decent wage" rather than a "living wage".

Currently that amount is calculated to be, "whatever keeps you off of public assistance," because at that point the corporation is no longer skimming public funds to keep their workforce alive
I.e., the "living wage" concept assumes your conclusion as a premise.

(b) In the centuries before government tried to make sure everybody got enough to eat, did the companies that were able to stay in business pay all their employees that much (adjusted for inflation)?

Oh certainly not. Some of their employees were allowed to <list of bad things snipped> Indeed, companies were able to stay in business through a callous disregard for their employees' lives and health.
Good for you, for finally offering a fact-based analysis.

I'm not sure why you made this comparison if you don't want to compare the practices that comprise the answer to your question.
It's not a comparison; it's a question. But good for you, for not dealing with your ignorance of my motivation by coming up with an obviously incorrect guess and slandering me with it.

Now, however, we've made a sort of a social compact that we want to live in a world where we are not surrounded by starving people and maimed children.
Social compact theory is a steaming pile of dingoes' kidneys that Hobbes made up to justify absolute monarchy; but if you mean we the people have collectively decided we want to live in a world where we are not surrounded by starving people and maimed children and have voted in such a way as to make that happen, then yes, exactly so.

You deny a connection between the forces that have kept minimum wage from growing with productivity and inflation, and with the corporations who are deliberately and willingly asking the public to pay for the gap, while simultaneously fomenting outrage about the "size of the entitlement programs."
Not sure what these things are whose connection I'm supposed to be denying. I haven't heard any corporation ask the public to pay for the gap. My guess is that that's probably an idiosyncratic semantic construction you're putting on your observations of their pay scales, based on once again assuming your conclusion as a premise. But if you can quote a corporation actually asking the public to pay for the gap, go for it. As for the minimum wage, that has been growing with inflation overall. It's about where it was in the early 60s and again in the 90s; it was higher in the 70s; it was lower in the 50s and for most of the 2000s. But Congress won't index it and prefers to just vote to reset it every few years, which means whether it goes up faster or slower depends on the exact time-frame one chooses.

I believe they want absolutely nothing less than the return to the times when choosing a job was not about getting a good fit and a productive life, but back to when choosing a job (and hence choosing to let good people leave it) was about whether your child woke up the next morning or not.

to answer your later clarification, wherein bomb20 does not see that it is mooching to rely on public assistance to provide a level of employee health (via nutrition, healthcare and housing) that is nevertheless exploited by the employer for profit, I direct you to Canard's answer just above. The employer is getting something that was paid by the taxpayers. Fed, housed and healthy workers. Without that taxpayer contribution, these people would not be what the employer wants to hire.
But the times when choosing a job was about whether your child woke up the next morning or not were the times when employers were, according to Canard's account, getting unhoused, unfed and/or unhealthy workers. So you are making contradictory claims about the sort of workers the employer wants to hire. And it follows from this that at least one of the claims in your argument is false.

Which brings us full circle. The reason I asked questions (a) and (b) was because you wrote:
"Here's the connection: *this* demand, the one where you want enough food to stay alive, requires that in applying for public assistance you must look for a job. And if you can't find a real job, you are forced to work for a place like Walmart.

So here are your choices.
- land a job with a living wage
- try to get public assistance, which requires you to take any job, even one that will not pay a living wage.

That's the "supply" and "demand" that is actually going on, not some capitalistic utopia supply and demand. It's the one that lets Walmart run their business paying people less than a living wage because the need to get assistance to requires the workers to be indentured like that."​
But as you have established with your "Oh certainly not." reply to question (b), companies are in fact able to run their business paying less than your answer to question (a), even when the government doesn't provide public assistance and "indenture" recipients to them. Therefore the pretty sick system you are describing is not, in point of fact, what lets Walmart run their business the way they do. I asked the questions because their answers prove you are basing your accusation of mooching on an argument containing a false claim.

Now let's look at the rest of your arguments.

It seems, if your company is _unable_ to make a satisfactory profit without the government assisting your employees in staying alive through food, medicaid and welfare, then <snip>
But you've established that companies are _able_ to make a satisfactory profit -- what you called "make loads and loads of money" -- without that assistance. So your argument starts out with a false premise from the get-go.

So if you pay employees so little that they cannot afford basic food and housing and medical care, then your business is expecting the government to keep your workers alive.
That doesn't follow. You offered an alternative yourself: the business may have a callous disregard for their employees' lives and health. So you are making the false claim that X implies Y when in fact X does not imply Y.

The "supply and demand" says that the employees **MUST** look for work to receive benefits in many cases. Yet they aren't just getting a low-wage job that is only worth low wages. The Walmart Corp makes MASSIVE profits. The system is forcing these people to take any old job
That's another false claim. A requirement to look for work is not a requirement to take any old job. It's just a requirement to look.

I have a really really large problem with a company making profits - huge profits - while requiring aid from welfare to keep their employees alive.
But as we established in question (a), what you call a "living wage" is what it takes to provide decent safe housing, decent safe food and decent safe healthcare, not what it takes to keep employees alive. You have been equivocating on the term "living wage" -- you are arguing that the government providing a decent lifestyle is something companies "require"; and what you are offering as support for this is the claim that without it the employees will die. But as you established in answering question (b), companies in fact can get living workers without the government doing that. So you are using a formal fallacy to derive a false lemma.

The point of all these false claims and invalid arguments, plainly, is to pretend a world where we are not surrounded by starving people and maimed children is something employers require, rather than simply something we've decided we want. The reason people paint it that way is because they have a moral judgment in mind: that the bill for that excellent world should be paid by employers. They'd like to have a justification more impressive than "because we want them to pay for it" for this moral judgment. So they need a moral premise, i.e., a belief that lets them take the is-to-ought step. The premise "People should pay for the services they're using" looks like it could be made to do the job, so they put the judgment and the premise together according to the inference rule "B. A implies B. A must be true." They want to believe employers require their employees to get government welfare, or that the job is objectively worth a decent wage, or whatever fact will give them an "is" to launch their "is-to-ought" leap from. So they're primed to accept any argument for A no matter how poor it is from the point of view of observation or of formal logic. It's classic wishful thinking. That's why I say the meme you're pushing is really really stupid. Those false claims and invalid arguments aren't subtle. Over and over again you and the other people endorsing the "mooch" view make arguments full of elementary logic errors and blatant reality avoidance. The meme you're pushing tricks you into not noticing or perhaps not minding how bad your arguments are. In this respect it's no different from Christianity.

Note that none of the foregoing analysis argues that there's anything wrong with making employers pay a decent wage. If the voters want to do that, we can. This is a democracy. As I told ld and he refused to grok, I'm not criticizing your wage demand. Demand what you please. But let's not deceive ourselves about what it is we're doing and why. You said it yourself: we want to live in a world where we are not surrounded by starving people and maimed children. "We want". The so-called "living wage" is about giving the poor what we want them to have, not about giving them what employers are depending on them to have.

So can you or can you not exhibit an argument that contains no false claims or formal fallacies for why paying employees less than enough for decent safe housing, decent safe food and decent safe healthcare is mooching?
 
Then where are the extra profits?? Any publicly traded company has to report how much they made--and they're not going through the roof. A few companies are making out well, not business as a whole.

Are you just not paying attention?

o-CORPORATE-PROFITS-570.jpg
 
So can you or can you not exhibit an argument that contains no false claims or formal fallacies for why paying employees less than enough for decent safe housing, decent safe food and decent safe healthcare is mooching?

InternetToughGuy.jpg
 
Bomb#20 said:
But as you have established with your "Oh certainly not." reply to question (b), companies are in fact able to run their business paying less than your answer to question (a)

They are not. People living and working in those conditions would get a 21st century food or retail business shut down at the first inspection. That's if lack of custom didn't finish them first. Or half their workforce being in school.

But what I really like about this argument is that it puts the lie to the idea that the "free market" eliminated those squalid conditions. Now we learn that they're how low-wage employers would survive without state intervention and tax dollars. I very much doubt it but that'd still make them moochers.
 
You're using fallacious reasoning here, equivocating between what is required to make a profit and the practice of offloading costs of business onto others. The former is fairly easy - if nothing else you can just steal the money from other people. You make a huge amount of profit, all of which is paid for by others. What is more useful, and the reason why we keep corporations around at all, is that they create wealth. That is they create more value overall as a result of their presence.

The point of all these false claims and invalid arguments, plainly, is to pretend a world where we are not surrounded by starving people and maimed children is something employers require, rather than simply something we've decided we want.

No, the point is that employers can not make a profit without actively contributing to starvation and maimed children. Since this is something that we have decided we don't want, employers are not permitted to starve people or maim children. This doesn't make it a 'nice to have' gesture that the employer is somehow not responsbile for. They're no more permitted to maim children than they permitted to mug them and take their wallets. Not being able to create negative externalities is a cost for everyone - my trip to work would be much quicker if I could push a hapless pedestrian into the road whenever I wanted to cross - but it doesn't follow from that my refraining from murder is a cost that the rest of society should subsidise. Similarly, a business has to pay it's own way, even if it incurs extra costs by not maiming children.

So too with employees getting welfare. The employer has to pay for employees. The base cost of an employee is the cost of maintaining that employee to a certain arbitrary standard, determined by society, thus creating a nice level playing field. This has always been the case. Even Roman slaves had minimum standards of maintainance.

And the reason for it isn't hard to spot. Extreme inequality is expense. Having poor starving hoardes at the factory gates produces social upheaval, epidemic outbreaks of disease, increased crime, and a choking of social safety nets and shared resources. People that help produce such inequality are creating a cost, a negative externality, that other people have to pay for.

You're trying to argue that any cost that is demanded by society at large should be the responsibility of society at large, but that removes from the company all responsibility for their own costs. Calculating profit in that way leaves us with no way to distinguish between companies that are a net drain and companies that produce wealth, and thus hampers the operation of a free market.
 
Then where are the extra profits?? Any publicly traded company has to report how much they made--and they're not going through the roof. A few companies are making out well, not business as a whole.

Are you just not paying attention?

o-CORPORATE-PROFITS-570.jpg

That's exponential data, of course it looks like this. Thus looking like this proves nothing. Whoever made that graph either doesn't know what they are doing or they like to deceive with statistics.

Try plotting profits vs GNP.
 
Bomb#20 said:
It seems, if your company is _unable_ to make a satisfactory profit without the government assisting your employees in staying alive through food, medicaid and welfare, then <snip>
But as you have established with your "Oh certainly not." reply to question (b), companies are in fact able to run their business paying less than your answer to question (a)

They are not. People living and working in those conditions would get a 21st century food or retail business shut down at the first inspection. That's if lack of custom didn't finish them first. Or half their workforce being in school.
Heh. Good one. But her statement is clearly meant to be about what you'd be able to do in a hypothetical alternate world in which the government doesn't assist your employees. That's transparently not a world where you'd get shut down for not providing decent wages.

A: Your plane is unable to fly without the crucifix I put on the nose. You're mooching if you don't pay me for it.
B: Of course it can fly without the crucifix. Look at all those other planes flying without crucifixes.
A: No it can't -- I welded it on with thermite!​

Nice try though.

But what I really like about this argument is that it puts the lie to the idea that the "free market" eliminated those squalid conditions.
Um, it's history that refutes that silly idea, not this argument. All this argument does is exhibit one way a company would be able to make a profit. That hardly rules out the existence of other ways.

Now we learn that they're how low-wage employers would survive without state intervention and tax dollars. I very much doubt it...
So you're saying you learn something that you very much doubt. That's not really what "learning" is. No, what you learn is one way low-wage employers could survive. That doesn't say much about what they would do.

...but that'd still make them moochers.
Say it two more times and maybe that will make it true.
 
You're using fallacious reasoning here, equivocating between what is required to make a profit and the practice of offloading costs of business onto others.
I am? Show your work.

The point of all these false claims and invalid arguments, plainly, is to pretend a world where we are not surrounded by starving people and maimed children is something employers require, rather than simply something we've decided we want.

No, the point is that employers can not make a profit without actively contributing to starvation and maimed children.
They can't? Show your work.

Okay, that's too glib. Let's analyze the two parts separately. It's true that back in the bad old days employers were actively contributing to maimed children. This was primarily a consequence of the "fellow-servant rule". The implication was that if you got hurt on the job, the courts told you to sue the poor worker whose screw-up made your job unsafe instead of the rich boss who paid him to get as much work done as possible whether safely or not. This incentivized unsafe working conditions. My point is, the solution to the maimed children problem was to do away with child labor, abolish the stupid fellow-servant rule, correct the stupid incentives, make employers liable or even prosecute them for unsafe working conditions, and so forth, none of which have anything to do with wage levels. When Rhea brought up our wish not to have maimed children, she was not on point. Employers can make a profit now following all safety rules and paying minimum wage; they'd make more profit if they followed those rules and there were no minimum wage; if the government stopped welfare programs but kept safety laws then employers would still have been able to make a profit without paying their employees a "living wage", since they profited without paying a "living wage" back in the bad old days, and it wasn't the lack of safety rules that caused them not to pay a "living wage". It follows that the circumstance that employers were able to get away with creating dangerous workplaces is only evidence that the bad old days were bad; it doesn't bear one way or the other on the claim that welfare is what makes companies able to make a profit paying low wages.

So this brings us to the heart of the whole matter, part two...

Since this is something that we have decided we don't want, employers are not permitted to starve people or maim children. This doesn't make it a 'nice to have' gesture that the employer is somehow not responsbile for. They're no more permitted to maim children than they permitted to mug them and take their wallets. Not being able to create negative externalities is a cost for everyone - my trip to work would be much quicker if I could push a hapless pedestrian into the road whenever I wanted to cross - but it doesn't follow from that my refraining from murder is a cost that the rest of society should subsidise. Similarly, a business has to pay it's own way, even if it incurs extra costs by not maiming children.
So you are claiming that if an employee is not paid enough not to be starving, that's the employer offloading the cost of business, actively contributing to starvation, creating a negative externality, and so forth. Show your work.

Employment is an exchange. It consists of two distinct actions. (1) The employee engages in some productive activity that the employer wants him to do. (2) The employer gives him some asset that the employee wants to own. Which one of these two actions is the one that you are claiming creates a negative externality and actively contributes to starvation?

So too with employees getting welfare. The employer has to pay for employees. The base cost of an employee is the cost of maintaining that employee to a certain arbitrary standard...
How is it possible for whether an action actively contributes to a physical phenomenon to depend on an arbitrary standard?

You're trying to argue that any cost that is demanded by society at large should be the responsibility of society at large
I am? Did I make a moral claim somewhere in this thread? I'm reading arguments and pointing out errors in them. Any cost that is demanded by society at large can be laid at the door of anybody society chooses to lay it at. But if some member chooses to try to justify his preferred social choice, by making an "is" claim and propounding an "is-to-ought" principle, then the rest of us get to check whether his claim is true and whether his principle is plausible.

, but that removes from the company all responsibility for their own costs.
That's putting the cart before the horse. At this point all you've got is an unproven claim that the cost you're talking about is the company's own cost.

Calculating profit in that way leaves us with no way to distinguish between companies that are a net drain and companies that produce wealth, and thus hampers the operation of a free market.
And distinguishing between such companies by comparing them to a standard you've already stipulated is arbitrary will correctly identify the companies that produce wealth, will it?
 
Bomb#20 said:
It seems, if your company is _unable_ to make a satisfactory profit without the government assisting your employees in staying alive through food, medicaid and welfare, then <snip>
But as you have established with your "Oh certainly not." reply to question (b), companies are in fact able to run their business paying less than your answer to question (a)

They are not. People living and working in those conditions would get a 21st century food or retail business shut down at the first inspection. That's if lack of custom didn't finish them first. Or half their workforce being in school.
Heh. Good one. But her statement is clearly meant to be about what you'd be able to do in a hypothetical alternate world in which the government doesn't assist your employees. That's transparently not a world where you'd get shut down for not providing decent wages.

A: Your plane is unable to fly without the crucifix I put on the nose. You're mooching if you don't pay me for it.
B: Of course it can fly without the crucifix. Look at all those other planes flying without crucifixes.
A: No it can't -- I welded it on with thermite!​
My statement (and, I think, hers) is about what would happen in this world if employed people who need welfare didn't get it. It didn't say you'd get shut down for not providing decent wages and I've no idea what the plane and crucifix thing is about.

Nice try though.
Thanks. Sorry I can't say the same.

But what I really like about this argument is that it puts the lie to the idea that the "free market" eliminated those squalid conditions.
Um, it's history that refutes that silly idea, not this argument. All this argument does is exhibit one way a company would be able to make a profit. That hardly rules out the existence of other ways.
The argument does not exhibit one way actual MW employers in today's real world of restaurants and retail would be able to make a profit. They are the employers Rhea refers to. Not 19th century cotton mills and chimney sweeps somehow transported into the 21st, or any other "hypothetical alternate world"

Now we learn that they're how low-wage employers would survive without state intervention and tax dollars. I very much doubt it...
So you're saying you learn something that you very much doubt. That's not really what "learning" is. No, what you learn is one way low-wage employers could survive. That doesn't say much about what they would do.
Now we learn that all Americans are pedantic literalists, deaf to all sarcasm.

...but that'd still make them moochers.
Say it two more times and maybe that will make it true.
Don't think I need to.
 
Then where are the extra profits?? Any publicly traded company has to report how much they made--and they're not going through the roof. A few companies are making out well, not business as a whole.

Are you just not paying attention?

o-CORPORATE-PROFITS-570.jpg

That's exponential data, of course it looks like this. Thus looking like this proves nothing. Whoever made that graph either doesn't know what they are doing or they like to deceive with statistics.

wtf are you talking about "exponential data?"

Try plotting profits vs GNP.

It says the same story:

corporate-profits-as-a-of-gnp_large.JPG


And that story is you just aren't paying attention if you think we're in a period of low corporate profits.
 
I am? Show your work.

My work was in the following lines, which you have deleted.

Okay, that's too glib. Let's analyze the two parts separately. It's true that back in the bad old days employers were actively contributing to maimed children. This was primarily a consequence of the "fellow-servant rule".

Maybe in the US, but a high casuality rate was a world-wide phenomenon, not one limited to countries with this rule, so i'm inclined to regard the actual law as irrelevent. The point was that people were willing to accept a high casualty rate then, and they aren't now. That is something demanded by the wider society, yes, but the causalties are being authored by the business, and cost is thus bourne by the business. That's why Rhea was entirely on point here, because the disconnect you're arguing between living wage and the business applies just as well to casaulty rates and the business.

Since this is something that we have decided we don't want, employers are not permitted to starve people or maim children. This doesn't make it a 'nice to have' gesture that the employer is somehow not responsbile for. They're no more permitted to maim children than they permitted to mug them and take their wallets. Not being able to create negative externalities is a cost for everyone - my trip to work would be much quicker if I could push a hapless pedestrian into the road whenever I wanted to cross - but it doesn't follow from that my refraining from murder is a cost that the rest of society should subsidise. Similarly, a business has to pay it's own way, even if it incurs extra costs by not maiming children.
So you are claiming that if an employee is not paid enough not to be starving, that's the employer offloading the cost of business, actively contributing to starvation, creating a negative externality, and so forth. Show your work.

Cost of employee to society = X (not starving, desperate or creating other externalities)
Cost to employee to business Y
Where Y < X, society is having to subsidise the business.

Simply put, someone has to pay for the employee to be a functional member of society. If the employer is claiming all their labour (the benefit of their presence) but not paying for the cost of their presence, then they are creating a negative externality.

Employment is an exchange. It consists of two distinct actions. (1) The employee engages in some productive activity that the employer wants him to do. (2) The employer gives him some asset that the employee wants to own. Which one of these two actions is the one that you are claiming creates a negative externality and actively contributes to starvation?

The employer claiming all the productive activty while bearing less than the full cost.

So too with employees getting welfare. The employer has to pay for employees. The base cost of an employee is the cost of maintaining that employee to a certain arbitrary standard...
How is it possible for whether an action actively contributes to a physical phenomenon to depend on an arbitrary standard?

The same logic applies to a different yardstick. The only difference between the starvation example and the less than an arbitrary standard example is that society now recognises needs of the employee beyond merely food.

You're trying to argue that any cost that is demanded by society at large should be the responsibility of society at large
But if some member chooses to try to justify his preferred social choice, by making an "is" claim and propounding an "is-to-ought" principle, then the rest of us get to check whether his claim is true and whether his principle is plausible.

Which it is.

Calculating profit in that way leaves us with no way to distinguish between companies that are a net drain and companies that produce wealth, and thus hampers the operation of a free market.
And distinguishing between such companies by comparing them to a standard you've already stipulated is arbitrary will correctly identify the companies that produce wealth, will it?

Absolutely, it identifies the opportunity cost of employment. If the company is not paying for the value of the employees, then it's offloading that cost onto other people.
 
Cost of employee to society = X (not starving, desperate or creating other externalities)
Cost to employee to business Y
Where Y < X, society is having to subsidise the business.

Simply put, someone has to pay for the employee to be a functional member of society. If the employer is claiming all their labour (the benefit of their presence) but not paying for the cost of their presence, then they are creating a negative externality.

Well, tbf the employee could start mining bitcoins to make up the difference.
 
That's exponential data, of course it looks like this. Thus looking like this proves nothing. Whoever made that graph either doesn't know what they are doing or they like to deceive with statistics.

wtf are you talking about "exponential data?"

I suggest looking up the meaning of "exponential".

Try plotting profits vs GNP.

It says the same story:

corporate-profits-as-a-of-gnp_large.JPG


And that story is you just aren't paying attention if you think we're in a period of low corporate profits.

That's a very different story in that graph. There are some companies doing well these days, many more doing poorly. There's a survivorship bias here--destroyed companies don't count.
 
My statement (and, I think, hers) is about what would happen in this world if employed people who need welfare didn't get it.
Do you understand how counterfactual conditionals work? They have possible world semantics. Whenever X is the case and you talk about what would happen if X were not the case, you're talking about a different possible world, not this world. This is a world where employed people who need welfare can get it.

It didn't say you'd get shut down for not providing decent wages and I've no idea what the plane and crucifix thing is about.
Just an illustrative example of using a counterfactual conditional in an argument and then mixing up the world the arguer is actually in with the possible alternate world of his argument.

The argument does not exhibit one way actual MW employers in today's real world of restaurants and retail would be able to make a profit. They are the employers Rhea refers to. Not 19th century cotton mills and chimney sweeps somehow transported into the 21st...
The consequence of not having welfare for employed people is that employees will be poorer. My contention is that having poorer employees does not cause unprofitability. What my argument exhibited was evidence for this contention: the fact that 19th-century cotton mills were profitable even though they had much poorer employees that actual modern MW employers. This thereby exhibits one way for actual profitable 21st-century MW employers to still make a profit if this were a possible world where employed people who need welfare can't get it: they could make a profit by operating exactly the way they currently make a profit, with modern safe working conditions and so forth, but with their employees poorer, which doesn't cause unprofitability.

Is it your contention that having poorer employees in fact would have made 19th-century cotton mills unprofitable, were it not for the money employers saved by having unsafe conditions? If so, what extraordinary evidence do you have for that extraordinary claim?
 
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