#100
lpetrich
"Worth" or "value" of anything is whatever price it commands in the competitive market, determined only by supply-and-demand, based on the free choices of buyers and sellers without interference from 3rd parties.
Capitalist-utopian spherical-cow economics. Yawn.
When the actual price in the market differs from the "value," it is because of a distortion caused by violation of the above rule, i.e., competition is required and the prices are determined "only by supply-and-demand, based on the free choices of buyers and sellers without interference from 3rd parties."
Give an example where the price and "value" are different and it is not due to an infraction of the above rule.
Most commodities are priced this way, though the market is not perfectly competitive and free. But it is mostly free and competitive, whereas for labor the market is distorted by government and labor unions which impose higher labor cost onto employers, higher wage-levels than that of the market.
Labor unions are private organizations, and are as legitimate as Chambers of Commerce and business lobbies.
It is not legitimate for these or anyone, public or private, to distort prices by limiting competition.
Or do only business leaders have a right to cooperate and to lobby governments? Do only they have a right to try to rig markets to their advantage?
No one should have any right to restrain competition. All producers, including wage-earners, should have to compete and not fix prices, including the price for labor.
So they reject the crybabies and go in search of lower-cost immigrant workers, to the benefit of consumers, because lower cost of production = lower prices to consumers = higher standard of living.
As if consumers get their spending money from picking money trees.
How they get their money is their personal individual problem, not a social problem.
It is a social problem if they are not paid enough to consume what they help produce.
Lots of workers and producers produce something they cannot afford to consume themselves. That is no problem at all. An example is tourist hotel workers who clean the rooms which they themselves could not afford. There is no problem that many workers and businesspersons could not afford to buy the same product they produce themselves.
Production serves a social need, but not consumption.
What's the point of production? To fill up warehouses? To dig holes and then fill them up again?
The point of production is to serve consumers. But there is no point of consumption. It's just there. Consumers want something so they buy it. There's no social need filled by it, only the individual need of individual consumers.
There is no social need to get people to consume. But there is a need to get them to produce. Consumption takes care of itself. There is no lack of consumption needing to be corrected, except that an individual consumer wants something and so goes about trying to find something to satisfy that want. But this is an individual issue only, not a social issue. I.e., an individual need or want, not a social need or want.
There is no problem if someone with money does not spend it, or if someone chooses not to consume. But there is a problem if someone chooses not to produce. Society needs to create incentives to get people to produce. But there is no need for incentives to get people to consume.
We replace workers with robots in order to save on labor cost, and we're all better off because of it, even if those replaced workers then have no money. It's the production that matters and has value, not the spending by consumers.
But I thought that you were pro-consumer.
It is pro-consumer to say that we need producers to satisfy the needs/wants of consumers. Promoting production is pro-consumer.
There is no need to get people to consume who otherwise would not. But there is a need to get people to produce who otherwise would not produce. We bribe people to produce by rewarding them, so they will produce even if they would prefer not to.
We don't need better consumers. We need more work done, better workers, better production, better performance of the work to serve consumers.
I take it that you volunteer by giving back everything that you nominally earn, so you will not be a financial burden on your employer.
The reason we pay the workers is to get them to produce. It's not their consumption that we need, but their work or their production. The money paid to them and their spending of it serves only as a reward to them for the work they do, i.e., as an enticement to them to get them to do the work, and that work or production is all that has any value. Their spending the money or their consumption per se has no value. But as an enticement to get them to work it has value, because their work has value.
When that same work can be done better without the worker, such as by a robot or computer, then we don't need that worker any more, and there is no further need to pay that worker, because their consumption per se has no value, but as a reward to get them to work it had value when they were needed in order to get the work done.