Again, employer-bashing and -scapegoating seems to be the "fair trade" bottom line.
The following post seems mostly off topic. But not entirely, so --
step 1:
Defining "free trade" and "fair trade"
Until someone else says otherwise, here are the working definitions of "free trade" and "fair trade":
FREE TRADE: All buyers and sellers everywhere (including employers and wage-earners), from or to anywhere, are left free to set their prices based on whatever price both the individual buyer and seller agrees to in any particular transaction, with no 3rd party interfering to drive the price up or down from that agreed level. (Qualifier: "Free trade" is also defined as the elimination/reduction of barriers to trade across boundary lines. Though different, these definitions harmonize and are not contradictory, .)
FAIR TRADE: Free trade (as defined above) is OK except that in many/most/all cases the wage-earners in a transaction must be paid higher than that agreed to by the employer and wage-earner if left alone to decide the wage level -- So a 3rd party (e.g. the state) should interfere and set the wage level (or compensation) higher, and this higher level should be enforced by law or should be imposed by social pressure onto the employer who is guilty of a crime or social injustice to seek the lowest wage level, or the lowest price for labor. (Qualifer: "Fair trade" can also refer to compliance with environmental standards which are followed by some producers but not others, and those violating the standards ("unfair" trade) need to be corrected and brought into compliance. In this case "fair trade" is probably better than "free trade" and there is little need for a debate.)
income inequality -- overpaid CEOs
[DrZoidberg]:Aha, yes. Sorry. Yeah, it's funny that anybody who ever climbed the corporate ladder realizes that no, CEO's aren't overpaid. They are paid what they are pulling into the company. They're extremely dependable people. They're paid for the fact that they are willing to sacrifice everything and anything for the job. A job they are also good at. That costs money. Most people are not willing to sacrifice what it takes.
I climbed the corporate ladder to the executive board of directors in a German engineering and contractor ~1 billion euros in sales a year corporation. From what I saw in the board that I was on, the board that was responsible for the operation of the company, this is not anywhere close to being true.
As underpaid as I was as a hardworking engineer, project manager, and head of branch offices in Canada and the PRC, I was grossly overpaid as a board director in charge of R&D and long range planning.
Have you ever heard of the Peter Principle? I suggest that you do a search on it. In short, it says that in any organization, people tend to advance in the organization until they reach the first job that they are totally incompetent at doing. Most of the corporate executives are people in their Peter Principle jobs and always afraid that they will be found out and fired.
All that needs to be said here is that if it's true that CEOs (or certain other high-level personnel) are overpaid, the remedy to this is not to artificially increase the wages of lower-level workers. This would only increase the inefficiency of overpaying people and doing even more damage to society, which is entitled to have producers keep their costs low and direct the high profits more toward the benefit of consumers rather than to excessive salaries or other high costs.
There may be remedies to excessive salaries/compensation, but increasing wages above the market level (set by supply-and-demand) is not one of them.
Or to put it another way. If you are willing to sacrifice what it takes, you to can make that money. If you really want it. BTW, it's not worth it.
Aha. Yes. Since the wheels of the economy are spinning so efficiently, yes. Most people are unnecessary. Just wait until the robot revolution kicks off in earnest and most service jobs disappear. That's just around the corner now.
We know what has to be done to adapt to mechanization and automation because we have been doing it for the entire period of the industrial revolution. This is a welcome and a desirable feature of capitalism and the industrialization of it. We should do what we have always done in the past. We should . . .
Here's something we did in the past:
Jobs Created by ELIMINATING Wind Power *
Last year a wind-powered sawmill was built near the Strand, London. (The Strand is a major road following the Thames River.) Apparently it has been such a successful business that a lot of sawyers are out of work. (A sawyer is man who saws wood by hand.) King Charles the 1st of England is fighting an economic slump so he demolishes the sawmill in order to quell a possible riot and puts the sawyers back to work. [1] [2] [3] [4]
http://tspwiki.com/index.php?title=1634#Jobs_Created_by_ELIMINATING_Wind_Power_.2A
And there are probably some other examples of the same. There is a makework mentality still practiced today. What was the purpose of "bringing back the factories" from China, which not only Trump did (or tried to do) but also is promised by Biden and Bernie Sanders and other Left-wing demagogues. What purpose was served by that other than the same purpose served by King Charles I who destroyed the sawmill? What does the U.S. gain by forcing steel companies to pay Americans much higher wages to do the same job that was done in China at much lower cost?
You know the answer -- all together now:
"Jobs! jobs! jobs! jobs! jobs! jobs! jobs! jobs! jobs!"
What's the difference between Trump's "jobs! jobs! jobs!" from China and King Charles I's "jobs! jobs! jobs! jobs! jobs! jobs!" for those sawmill workers? Setting aside left-right disagreements, everyone agrees -- Trump and Biden and Bernie, Reds and Blues alike, Left and Right -- all agree on the need for "jobs! jobs! jobs!" = babysitting slots for uncompetitive crybabies.
We should do what we have always done in the past. We should shorten the workweek. Many companies have . . .
But we should also lay off workers, which also has been done in the past. Many of those workers were simply not needed any longer by that company and so were terminated, not necessarily kept and given a shorter workweek. In some cases a shorter workweek also means reduced total pay, because the same hourly pay is retained. There's nothing which says the hourly rate has to increase just because the company has adopted new technology which does the same job better than before. To demand that all the workers must be retained and paid the same rate as before is to impose an unnecessary high cost onto the company, reducing its profit and its incentive to expand production to serve consumers better. Serving consumers has to take priority over babysitting the employees in their "jobs! jobs! jobs! jobs!" where Charles I and Trump put them to keep them out of mischief.
. . . Many companies have already reduced the workweek from 40 to 36 hours a week with no loss in productivity.
How do you know there was "no loss"? You have no evidence to show that the productivity is the same as it would be if the workweek was 40 rather than 36 hours. Why are you insulting the workers by implying that that extra 4 hours of work by them would not be productive? Why wouldn't those 4 hours of work produce anything? Are those workers worthless after 36 hours? You think all workers suddenly become worthless when they reach their 36th hour of work for the week? You think all workers who toiled for 80 or 100 hours a week were all worthless after they passed their 36th hour? All the rest of their work that week was worthless? Who are you to condemn them as worthless?
We should lower the retirement age from 66 and whatever to 62.
Why not 52?
We should lengthen the time that people are in school and encourage national service to delay the age that people look to settle down and look for a job.
It is a mistake to believe that the market is efficient and always produces the best result.
The best rule is: The market is innocent until proven guilty. The burden of proof is on the accuser who says the market is wrong. If you can prove in a particular case that the market is wrong, then maybe in that one case it was wrong. Otherwise we should always assume the market produces the best result -- i.e., individual buyers and sellers making their free choice how much to pay or to charge for work done.
It is a mistake to believe that we have a perfect labor factor market that pays wages reflecting the contribution of a worker to the company.
Yes, it might be OVERpaying the worker, paying him/her not based on their contribution to the company and to society, but based on PITY toward them, because they need the income to pay for their family, to meet their private needs rather than the need of the company or society for them to do the work. It might be paying them like King Charles paid those sawmill workers, not for the work needed, but according to the need of those workers to have "jobs! jobs! jobs! jobs! jobs!" to keep them out of mischief. Like Donald Trump brought steelworker jobs from China to U.S. workers, to give them something to do to keep them out of mischief.
So yes, in that sense the wages paid may not really reflect the contribution of a worker.
These ideas don't reflect our reality. They are part of a fantasy of what the economy would be if we could have a self-regulating free market, which has . . .
We do have that, but there is no perfect free market or perfect anything.
. . . free market, which has never happened in the history of man's civilizations.
There has never been perfect democracy or justice or peace or liberty or human rights or anything else desirable. If you want a perfect system, you need to find a different galaxy to live in. As we get closer and closer to a self-regulating free market we become more prosperous and closer to the best possible outcome.
. . .
In the US the conservative line is that you have to be responsible for yourself and your family and by the way, we are going to suppress your wages so that the already rich can have . . .
Not conservatives like Sean Hannity and Laura Ingraham and Anne Coulter etc., who want to
PROP UP WAGE LEVELS by suppressing immigrant labor. They are always pandering to wage-earners about the need to prevent the immigrants from invading and stealing their jobs and suppressing their wage level. They condemn the Chamber of Commerce for being greedy and seeking cheap labor in the form of more immigrant work visas. So these conservatives are right there alongside you in your crusade to prop up the wage level at the expense of consumers who have to pay the resulting higher prices, and your crusade to scapegoat the greedy capitalist pig employers. Since Trump, the Right-Wingers have been flocking to join your employer-bashing crusade.
. . . so the already rich can have more income in the form of profits distributed as capital gains on stocks so that the already rich can pay less tax on them.
What? Who?
Why don't you make yourself useful for a change and get behind Bernie Sanders' proposal for a tax on Wall Street (every broken clock is right twice a day), which would be much simpler than trying to keep track of everyone's capital gains? Just have a tax on every stock sale, which is easily assessed and paid without any fanfare. So those who still rake in huge profits in stocks will end up paying a large price for it, being taxed on every transaction. And those already-rich do lots of stock transactions, having skilled day-traders gaming the system, knowing how to play it to accumulate large profits.
We will continue to push the falsehood that tax cuts for the rich is the best way to stimulate the economy, even though . . .
But what does "stimulate the economy" mean? Mainly it means "jobs! jobs! jobs! jobs! jobs! jobs!" -- which is crybaby nonsense. All we have to do to stop the "economic stimulus" babble is to do away with the "jobs! jobs! jobs! jobs! jobs!" babble. Once we stop encouraging companies to create "jobs! jobs! jobs! job!" mindlessly, there will be no more need for the "economic stimulus" and thus no need for the tax cuts, at which point we can then increase taxes as necessary to pay for needed infrastructure, and stop increasing public debt endlessly.
. . . to stimulate the economy, even though it never has, we will keep trying in the hope that some day it will.
No, we can stop hoping for "jobs! jobs! jobs!" and "economic stimulus" nuttiness and instead just increase taxes as necessary to pay for infrastructure. It's not just the conservatives who are preaching Nutcase Economics, but also the liberals/progressives who can't tear themselves away from the "jobs! jobs! jobs!" Crybaby Economics and "fair trade" demagoguery and who can't instead allow free trade to produce the wealth, taking advantage of the natural competition which occurs if the demagogues just get out of the way and let the market work, taking advantage of cheap labor and everything else to reduce costs.
The liberal line is that we can't be bothered with learning any economics, economics is so boring, so we are stuck with believing the fantasy that the labor market is a truly free market that reflects workers value to the company.
It's free if the employers and workers are left alone to make their individual choice. The "value" of the workers or anything else is determined by supply-and-demand: Oversupply of workers -> less worker value.
Instead, we will create a bunch of government programs to subsidize the companies who pay substandard wages that no one can live on.
The existence of parasitic corporate welfare is no excuse for them to overpay workers or anyone. The only proper response to corporate welfare is to end it, not to impose wasteful high costs onto them. Those corporate welfare programs are not necessary, and Left-wingers need to join free market crusaders to put an end to them, instead of pandering to crybaby wage-earners and unions.
In addition, we will believe in the fantasy that free trade is beneficial even to the workers whose jobs are lost to the low labor cost countries because it lowers the cost of a tv set and ignore the . . .
It's NOT beneficial to them? -- and to everyone -- that there are lower prices = lower cost of living? Why isn't it beneficial to them that we have lower prices as a result of more competition? A more competitive economy is NOT good for all of us? Higher cost is better?
"even to the workers whose jobs are lost" -- Again, what about those sawmill workers whose jobs were eliminated by the automated sawmill? I'd like someone to respond to this example, so I'll repeat it.:
Jobs Created by ELIMINATING Wind Power *
Last year a wind-powered sawmill was built near the Strand, London. (The Strand is a major road following the Thames River.) Apparently it has been such a successful business that a lot of sawyers are out of work. (A sawyer is man who saws wood by hand.) King Charles the 1st of England is fighting an economic slump so he demolishes the sawmill in order to quell a possible riot and puts the sawyers back to work. [1] [2] [3] [4]
http://tspwiki.com/index.php?title=1634#Jobs_Created_by_ELIMINATING_Wind_Power_.2A
Isn't it a fact that workers like these, and millions more, ALL consumers, benefit from lower prices as a result of automated factories which replace manual workers? That's the whole point of replacing the higher-paid workers with whatever or whoever can do it for less. Even the replaced workers themselves benefit overall from a better economy which produces the same output at lower cost.
If you don't think so, then you think it was right for King Charles I to destroy that automated sawmill to protect those "jobs! jobs! jobs! jobs! jobs! jobs!"? You and Trump and Pat Buchanan and RVonse.
"Fair trade" crusaders must respond to this and other examples of makework programs to create "jobs! jobs! jobs!" to provide income to victims rather than to get needed work done. Do you agree with King Charles protecting the jobs of those workers? Can't you recognize that this did more net damage to society? If you can't admit this, face this instead of pretending to support the worker-victims, you are a fraud and part of what is wrong. You are just as much to blame for what's wrong as any overpaid CEO or Trump demagogue, or communist or Right-wing fanatic, unless you stop the phony "jobs! jobs! jobs!" slogans and recognize the need for more free trade and competition -> reward those who perform better and let the less competitive suffer their lower pay status.
. . . because it lowers the cost of a tv set and ignore the easily proven fact that increasing the incomes of the already rich increases housing costs because the already rich save their money in real estate, driving the costs of real estate up along with rent.
This is a good argument for higher property tax, especially for a PROGRESSIVE PROPERTY TAX, but not an argument to prop up the wages of uncompetitive workers. Forcing all employers to pay higher wages, above the market price, does nothing to prevent the rich from investing in real estate and driving up housing costs. Why don't you really go after these "already rich" and their windfall profits, instead of scapegoating employers, many of whom are not the super-rich?
And that in the desire to maximize the incomes of the already rich we lowered the support for education, by lowering state and local taxes, increasing the costs of education, especially college tuition, wiping out the savings on that television and other consumer goods many times over.
And you think employer-bashing is the solution to that? and driving up labor cost in order to preserve uncompetitive "jobs" of crybabies like steelworkers and autoworkers who are in oversupply? How will that pay for education and other public needs? No, the solution is to increase some taxes on the rich, especially property taxes, especially with a
progressive property tax which need not affect middle-income home ownership.
But scapegoating all employers just because they're in a minority class doesn't fix anything, but only lets you spew your hate for this class, which again and again is the only rationale for "fair trade" which anyone is offering here.
In addition, we will block out the fact that in 1980 we changed the political economics that determines the economic policies of the government because it would force us to think that possibly this was the reason why so many things changed in the economy like the increase in the income inequality instead of automation or the economy rewarding the better-educated workers even though the main beneficiaries of the income inequality are the people selling securities to the already rich, which doesn't require a high level of education.
Who? Where? What?
Whatever the above is saying, the truth about it can be summed up simply:
• Reaganomics was a mixed bag having both good and evil in it, and increased trade is always good;
• There's no reason ever to prop up wage levels higher than the market price for labor, which is based on the lowest wage an individual worker will accept;
• If too much income is going to the top elite, the solution is to tax that segment higher (maybe tax their "securities"), not penalize ALL employers as a class;
• Let employers choose and pay as needed the better workers, better-educated, rewarding them as an incentive to attract more -> better performance, in order to improve the production for ALL society, but not drive up ALL wages even to the less competitive;
• Always replace anyone or anything which costs more by whatever or whoever can produce the same at lower cost.
That's what "free trade" is based on. Whereas "fair trade" is based on pity for crybaby wage-earners no matter how uncompetitive and worthless they are.