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Wealth Redistribution or Wealth Return?

What makes you think the CEOs and owners are kleptocrats? What makes you think the obscenely wealthy "take" from those who labor? Is it "Like Politesse"? I.e., because the CEO doesn't go out and do the digging? Are you, like he, in the grip of the Labor Theory of Value? Do you think the source of profit is "amassing money off of someone else’s physical labor", as though physical labor were all it takes to produce? Do you put the words "it’s now my honorable sweat" in the mouth of your cartoon villain because you think it's a fact of objective morality that only sweat is honorable so your cartoon villain can reasonably be expected to agree with you about that? The Labor Theory of Value is metaphysical drivel with no more empirical evidence for it than the Qi theory of medicine.
The Labor Theory of Value is one example of why I say Marx's fundamental flaw is assuming a static world. In a static world the Labor Theory of Value becomes correct, but in a changing world it is horribly wrong.

Why do you accuse the guy who owns the means of production of bullying or coercion? Do you think when two people trade, one of them being better off automatically means the other one must be worse off and only traded because he was bullied or coerced? Do you think in a just world nobody would ever get better off from a trade? Or do you decide someone was bullied and coerced even when he's the one who sought out the trade in the first place because he figured the trade made him better off? What makes you think you know what's good for him better than he does?
He's got more than me, he must be evil!
 
Been there, done that. In the other hand, you keep blathering on the Samoan minimum wage hike as if it is the philosopher’s stone instead of an isolated incidence in a specific context that is unlikely to similar to other situations. Nothing you have posted rebuts the observation that the effects of a minimum wage increase are an empirical matter that depends on the context.
It's not been addressed, just dismissed.

The Samoan minimum wage is an isolated incident because normally no government would faceplant that badly. That doesn't make the data invalid, any model of how the economy reacts to a minimum wage hike must be able to produce the Samoan result--and the eternal minimum wage hike doesn't cause unemployment crap doesn't predict Samoa.

Note, also, that we have two data points--there must be some sort of line that fits through them. Occam's razor--what reason to we have to think it's anything more than a simple straight line? I see nothing addressing this, just eternal harping on getting a "zero" when you're looking for something way below the noise floor.
 
Because the eternal requests for sources are really just a form of derail to avoid addressing the issue.
You were asked for a link to the research results. Not for your personal reminiscence of the time when you saw this fabled research. :rolleyesa:
Which doesn't address the point that the request is a form of derail.

By the way, the "noise floor" you keep mentioning, that obscures the effect? That's the evidence that your position is oversimplified.

What do you imagine causes the signal to become noisy below a fairly high threshold?

Your simple model says that increasing minimum wage by a very large amount, in a single day, can cause a significant rise in unemployment. But it also says that this relationship is not detectable (due to "noise") for small increases in minimum wage, or for large increases spread over long periods of many smaller steps. Why would that "noise" exist?
The noise is the precision with which we measure employment/unemployment.

Could it be that the system you're attempting to describe with a very simple model is, in fact, a very complex and chaotic system, with multiple feedbacks, some positive and some negative, which act to render simple models useless?
It could be complex but you need to justify that complexity. Occam's razor.

Could it be that the "expected" job losses from your simple model are, in reality, swamped by other factors, which quite possibly include job gains caused by the same changes that could lead to job losses under other circumstances?
Were there job gains in Samoa?? Just because they are possible doesn't mean they exist--you're trying to handwave away the problem.

There is a perfectly sound case that can be made that increases in minimum wage can, in some economic conditions, lead to an increase in the size of the economy, and as a result, to increases in the number of jobs available. Of course, there are a vast number of factors that make such a thing difficult to predict with great accuracy; It's usually easier to simply do it, and then look for any consequences.
Except we can't see a consequence unless the change is huge.

The only situation where you have any data is for a massive increase in the minimum wage in a tiny and highly constrained economy with a minuscule number of industries, and a tiny number of employers in each of the major industries that does exist.

Yes, I would expect that large economic intervention in such an extreme situation would result in serious problems.

No, I do not think that this tells us anything particularly useful about small interventions in much larger and more open economies. And nor should anyone who has noticed that the unemployment data in such large economies is very noisy.

That noise is the sound of things being too complex for your simplistic models to handle.
Big change = big problem. All I see is handwaving as to why the same thing doesn't happen at all scales.
 
Been there, done that. In the other hand, you keep blathering on the Samoan minimum wage hike as if it is the philosopher’s stone instead of an isolated incidence in a specific context that is unlikely to similar to other situations. Nothing you have posted rebuts the observation that the effects of a minimum wage increase are an empirical matter that depends on the context.
It's not been addressed, just dismissed.

The Samoan minimum wage is an isolated incident because normally no government would faceplant that badly. That doesn't make the data invalid, any model of how the economy reacts to a minimum wage hike must be able to produce the Samoan result--and the eternal minimum wage hike doesn't cause unemployment crap doesn't predict Samoa.
IMO, it is an isolated occurrence because of the geographical location, small size and particular structure of the Samoan economy and the large increase in the minimum wage at that time.
Loren Pechtel said:
Note, also, that we have two data points--there must be some sort of line that fits through them. Occam's razor--what reason to we have to think it's anything more than a simple straight line? I see nothing addressing this, just eternal harping on getting a "zero" when you're looking for something way below the noise floor.
I have read lots of economic gibberish in my career, and that tops the lot.
 
Marx even recognized that his system can't produce capital--because he said societies should wait for industrialization before going communist. That only makes sense if he understood the workers couldn't build the means of production.
So, what, the CEO goes out and does the digging? Sure...
The problem is things too big for one person to build.
Which is why we have....

a working class.

That produces all the things the wealthy ... class has neither the capacity nor the knowledge to produce.
And you have evidence that a working class has the capacity and the knowledge to produce all those things, do you?
Obviously, or we wouldn't have them.
That's a circular argument -- you're de facto saying the wealthy class are parasites and the evidence for this is that the wealthy class are parasites. How do you know we wouldn't have those things if a working class didn't have the capacity and the knowledge to produce them?

Workers do not typically choose to produce all that stuff by themselves without the help of the wealthy class;
So you admit that the workers are the party that produces all the stuff? If so, you are now agreeing with my point that you originally objected to.
That's a non sequitur. So you're not an economic creationist merely because you're resistant to thinking scientifically, but also because you're resistant to thinking logically. How the bejesus do you figure what I wrote implies they're the party that produces all the stuff? When Alice and Bob dig a hole together you wouldn't claim Alice dug all the hole; why the devil would you claim when I say the workers and the wealthy class produce stuff together it means I "admit" the workers produce all the stuff? All the stuff is produced by all the participants together -- the workers, the wealthy class, the customers, the suppliers, the police, and more you can add to the list. Cutting any of those out of the process suppresses production; claiming any subset produces all the stuff is reality avoidance.

(In case you fixated on the word "choose" and took it as an indication that I was saying getting help from the wealthy class was a choice on the part of the workers, "do not typically choose to" does not mean the same thing as "typically choose not to". People who can't jump a hundred feet do not choose to jump a hundred feet; but that doesn't imply they choose not to. I was pointing out that if your claim was correct then it would be a choice, so you'd need to explain why they don't choose to do it without people you're claiming they don't need.)

Whatever the aristocracy provides to the equation, it is not the knowledge or the labor to produce valuable commodities.
The labor, true, since you appear to be defining all who labor as non-"aristocracy". The knowledge, show your work.

But let's suppose for the sake of discussion that you're right that it's not the knowledge or the labor. Well then, why don't the workers produce stuff without making deals with "the aristocracy"? If your claim is correct, it's just more evidence that production takes more than knowledge and labor -- it also takes some third factor that the wealthy class has the capacity to provide and the working class doesn't. So on what basis do you deduce that a working class has the capacity "to produce all those things".

Bomb#20 said:
That's a circular argument -- you're de facto saying the wealthy class are parasites and the evidence for this is that the wealthy class are parasites.
Made no such claim, and wouldn't do.
Oh please. What you wrote was:

And you have evidence that a working class has the capacity and the knowledge to produce all those things, do you?
Obviously, or we wouldn't have them.

Well, suppose Alice and Bob dug a hole together, and you claimed Alice has the capacity and knowledge to produce the entire hole all by herself. Suppose I asked how you know, and you said "Obviously, or we wouldn't have the hole." That could not possibly be a correct explanation for how you know unless whatever Bob did wasn't any help. We could perfectly well have the hole even if Alice couldn't do it on her own, provided Bob carried out the steps Alice lacked the capacity or knowledge for. Your answer "Obviously, or we wouldn't have them." implicitly relied on the tacit premise that the wealthy class was no help in the production process. That premise amounts to classifying them as parasitical. This is not rocket science.

Simply having money is not what makes someone a member of the dipsh... well, the dumbo-head class. All dumbo-heads are wealthy, not all wealth is the result of dumboheadedness.
:facepalm: Nice try. "Dumbohead" is not a fair translation. "Dumbohead" impugns its targets' intelligence, not their character. The fact that you called them the dipsh... class would not lead a reasonable reader to infer that you regard them as stupid; it would lead a reasonable reader to infer that you hate them.

But, this system that keeps the super-wealthy classes fat and happy beyond any reasonable definition of need must be redesigned if our nation-state is going to have any hope of keeping up with the other advanced polities and corporations of the world.
By "advanced polities", are you referring to North Korea?
No, I had Germany and China in mind.
:picardfacepalm:
On what planet do you think there is a Germany and a China that don't have a "system that keeps the super-wealthy classes fat and happy beyond any reasonable definition of need"? Germany has almost as many billionaires as the U.S. per capita; China may be way behind per capita but it still has the second most billionaires in the world. Keeping the super-wealthy classes happy beyond any reasonable definition of need is something every other advanced polity of the world does too. There is no reason to think keeping the super-wealthy classes happy beyond any reasonable definition of need means the system must be redesigned in order to keep up, unless the countries you want us to keep up with are countries like North Korea that don't do that.

I know this is very hard for you to understand, but not everyone who is willing to critique the American economic system is a communist.
:rolleyesa:
Oh for the love of god! I do not treat you like a communist because you are "willing to critique the American economic system". I treat you like a communist because you keep spouting communist canards! Why the bejesus is your critique of the American economic system specifically that it "keeps the super-wealthy classes fat and happy beyond any reasonable definition of need" if you wish not to be perceived as advocating "To each according to his need"?!?

The steps socialists most often neglect when they're envisioning their noncapitalist utopias are the motivational steps.
The perception (especially if correct) that a worker's labor is severely under-valued, and their rights not guaranteed by the state, is not very motivating in fact.
Well, the capitalists who do the motivational production for the Acme corporation are not trying to motivate workers in general. They're trying to motivate Acme workers, as well as suppliers, customers and so forth. Capitalists do their motivating at the microeconomic level -- that's what they tend to be good at and those are the motivations they have their own motive to produce. It's not reasonable to expect Acme shareholders to optimize the motives of Zamboni workers. So if some state-level perception about overall valuation of labor and overall state guarantee of rights would be more motivating for labor in general, that's just yet another of the many macroeconomic effects that state intervention is the appropriate level to deal with. Macroeconomics is why God gave us Keynes -- it's not a reason to claim microeconomic motive generation doesn't help produce widgets.

In short: it is only a "win-win situation", as you say, if both parties agree that they are winning. Not just the party in power.
The "party in power" is whichever party has the power to end the deal. That's both parties. The objective measure of whether a worker "agrees" he is winning is not whether he says he's winning. It's whether he agrees to do the job -- whether he prefers working and getting paid to not working and not getting paid. He may call that "losing", because he subjectively measures winningness by comparing with arbitrary goalposts; but if he sincerely thought he didn't benefit from the deal then he'd quit.
 
American Samoa. US minimum wage laws suddenly ended up applying, much of the economy was working below that point. Major unemployment resulted.
Link?
What year did this happen?
How much did the wage change?
How much did unemployment go up?
What were the trends in both of those metrics before and after?
How did wages and unemployment change in other jurisdictions around that time period?

What analysis did you do to establish that this change in min wage and unemployment is representative of relationship between min wage and unemployment in general?

On what grounds can you reject the null hypothesis, which is that min wage is not related to unemployment?
The null can't explain what happened in American Samoa.
 
On what planet do you think there is a Germany and a China that don't have a "system that keeps the super-wealthy classes fat and happy beyond any reasonable definition of need"? Germany has almost as many billionaires as the U.S. per capita; China may be way behind per capita but it still has the second most billionaires in the world. Keeping the super-wealthy classes happy beyond any reasonable definition of need is something every other advanced polity of the world does too. There is no reason to think keeping the super-wealthy classes happy beyond any reasonable definition of need means the system must be redesigned in order to keep up, unless the countries you want us to keep up with are countries like North Korea that don't do that.
Exclude China from consideration. The billionaires are pretty much all due to corruption rather than actual economic success.
 
American Samoa. US minimum wage laws suddenly ended up applying, much of the economy was working below that point. Major unemployment resulted.
Link?
What year did this happen?
How much did the wage change?
How much did unemployment go up?
What were the trends in both of those metrics before and after?
How did wages and unemployment change in other jurisdictions around that time period?

What analysis did you do to establish that this change in min wage and unemployment is representative of relationship between min wage and unemployment in general?

On what grounds can you reject the null hypothesis, which is that min wage is not related to unemployment?
The null can't explain what happened in American Samoa.
Again, do you have a link to the data on American Samoa?

I'm pretty sure the null hypothesis always has an explanation for a single datum: it happened by chance, a coincidence with some other cause.

I'm limited to phone for the next few days and can only do limited searches for past discussion about minimum wage and AS on this forum, but as far as I can tell you've never produced any statistical analysis that would cause us to reject the null hypothesis.
 
American Samoa. US minimum wage laws suddenly ended up applying, much of the economy was working below that point. Major unemployment resulted.
Link?
What year did this happen?
How much did the wage change?
How much did unemployment go up?
What were the trends in both of those metrics before and after?
How did wages and unemployment change in other jurisdictions around that time period?

What analysis did you do to establish that this change in min wage and unemployment is representative of relationship between min wage and unemployment in general?

On what grounds can you reject the null hypothesis, which is that min wage is not related to unemployment?
The null can't explain what happened in American Samoa.
Again, do you have a link to the data on American Samoa?

I'm pretty sure the null hypothesis always has an explanation for a single datum: it happened by chance, a coincidence with some other cause.

I'm limited to phone for the next few days and can only do limited searches for past discussion about minimum wage and AS on this forum, but as far as I can tell you've never produced any statistical analysis that would cause us to reject the null hypothesis.
There's no reason to reject it as bad data, it's just that it's majorly inconvenient for those who argue for the null. The Samoa case is obviously not a null, you don't need statistics to see that. A straight line is inherently a perfect fit because we have effectively only two data points. (Eternal repetition of finding the 0, 0 point doesn't mean anything.)
 
... The Labor Theory of Value is metaphysical drivel with no more empirical evidence for it than the Qi theory of medicine.
The Labor Theory of Value is one example of why I say Marx's fundamental flaw is assuming a static world. In a static world the Labor Theory of Value becomes correct...
Why do you think so? Even in a static world people still trade. There have been any number of pretty much static societies; but trading is on the list of "human universals" -- phenomena anthropologists have found in every society they've looked for them in.

The reason person P trades good X to person Q in exchange for good Y is because Y is worth more than X to person P; likewise, the reason person Q agrees to the swap is because X is worth more than Y to person Q. Those contrary rankings of worth are only possible because value is subjective. There is no "the value of X" and "the value of Y"; there is only "the value of X to person P", and so forth. "Value" is fundamentally a verb, not a noun; value in its noun form is intrinsically valuer-relative. So no theory of objective value can possibly correctly model the phenomenon of valuing. The Labor Theory of Value defines a good's value as the amount of "socially necessary" labor it takes to create it; it is therefore a theory of objective value. Consequently, static society or no, the LTV cannot possibly be correct except in a society with no trading.

The Labor Theory of Value dies the same death as Ayn Rand's "Gold Theory of Value".
 
On what planet do you think there is a Germany and a China that don't have a "system that keeps the super-wealthy classes fat and happy beyond any reasonable definition of need"? Germany has almost as many billionaires as the U.S. per capita; China may be way behind per capita but it still has the second most billionaires in the world. Keeping the super-wealthy classes happy beyond any reasonable definition of need is something every other advanced polity of the world does too. There is no reason to think keeping the super-wealthy classes happy beyond any reasonable definition of need means the system must be redesigned in order to keep up, unless the countries you want us to keep up with are countries like North Korea that don't do that.
Exclude China from consideration. The billionaires are pretty much all due to corruption rather than actual economic success.
Corruption exists as a factor in almost all human societies that have ever existed, perhaps in all. It cannot be dismissed.
 
So from the American Samoa case, we can conclude that, as it would be disastrous to raise minimum wage in an economy with a GDP of half a billion US$, where 45.6% of workers are employed in a single industry, wherein there are just two companies, 75% of whose employees earn less than the new minimum wage level; Therefore it would also be disastrous to raise minimum wage in an economy with a GDP of fourteen and a half TRILLION US$, where there are a couple of hundred different industrial sectors, representing over ten million employers, 2% of whose employees earn less than the new minimum wage level.

We know this, because there's really not a lot of difference between these situations. As long as you accept that:
0.5 is approximately 14,500;
1 is roughly 200;
2 is much the same as 10,000,000;
and 75% is pretty close to 2%.

:rolleyesa:
 
And of course, the increased wages in Samoa were largely spent in ways which supported the local economy, because everyone knows that if you give a poor Samoan an extra dollar, he'll spend it on <checks notes> canned tuna.
 
American Samoa. US minimum wage laws suddenly ended up applying, much of the economy was working below that point. Major unemployment resulted.
Link?
What year did this happen?
How much did the wage change?
How much did unemployment go up?
What were the trends in both of those metrics before and after?
How did wages and unemployment change in other jurisdictions around that time period?

What analysis did you do to establish that this change in min wage and unemployment is representative of relationship between min wage and unemployment in general?

On what grounds can you reject the null hypothesis, which is that min wage is not related to unemployment?
The null can't explain what happened in American Samoa.
Again, do you have a link to the data on American Samoa?

I'm pretty sure the null hypothesis always has an explanation for a single datum: it happened by chance, a coincidence with some other cause.

I'm limited to phone for the next few days and can only do limited searches for past discussion about minimum wage and AS on this forum, but as far as I can tell you've never produced any statistical analysis that would cause us to reject the null hypothesis.
There's no reason to reject it as bad data, it's just that it's majorly inconvenient for those who argue for the null. The Samoa case is obviously not a null, you don't need statistics to see that.
That's the flaw in your thinking. You need statistics to reveal whether the null hypothesis falls within your confidence interval, and will tell you whether or not "the Samoan case" can be explained by the null hypothesis.

Right now you're just going by your gut feeling.
 
... The Labor Theory of Value is metaphysical drivel with no more empirical evidence for it than the Qi theory of medicine.
The Labor Theory of Value is one example of why I say Marx's fundamental flaw is assuming a static world. In a static world the Labor Theory of Value becomes correct...
Why do you think so? Even in a static world people still trade. There have been any number of pretty much static societies; but trading is on the list of "human universals" -- phenomena anthropologists have found in every society they've looked for them in.

The reason person P trades good X to person Q in exchange for good Y is because Y is worth more than X to person P; likewise, the reason person Q agrees to the swap is because X is worth more than Y to person Q. Those contrary rankings of worth are only possible because value is subjective. There is no "the value of X" and "the value of Y"; there is only "the value of X to person P", and so forth. "Value" is fundamentally a verb, not a noun; value in its noun form is intrinsically valuer-relative. So no theory of objective value can possibly correctly model the phenomenon of valuing. The Labor Theory of Value defines a good's value as the amount of "socially necessary" labor it takes to create it; it is therefore a theory of objective value. Consequently, static society or no, the LTV cannot possibly be correct except in a society with no trading.

The Labor Theory of Value dies the same death as Ayn Rand's "Gold Theory of Value".
There is value in specialization even when nobody is better than anybody else. Thus you will have trade even if everything is equal. I spent my time learning to make widgets while you spent your time learning how to make gizmos. It's to both of our advantage to trade widgets for gizmos--even if the situation would have worked equally well the other way around.
 
On what planet do you think there is a Germany and a China that don't have a "system that keeps the super-wealthy classes fat and happy beyond any reasonable definition of need"? Germany has almost as many billionaires as the U.S. per capita; China may be way behind per capita but it still has the second most billionaires in the world. Keeping the super-wealthy classes happy beyond any reasonable definition of need is something every other advanced polity of the world does too. There is no reason to think keeping the super-wealthy classes happy beyond any reasonable definition of need means the system must be redesigned in order to keep up, unless the countries you want us to keep up with are countries like North Korea that don't do that.
Exclude China from consideration. The billionaires are pretty much all due to corruption rather than actual economic success.
Corruption exists as a factor in almost all human societies that have ever existed, perhaps in all. It cannot be dismissed.
The point is the Chinese billionaires made it mostly through corruption rather than economic success. It's not a reasonable model of actual economic function.
 
So from the American Samoa case, we can conclude that, as it would be disastrous to raise minimum wage in an economy with a GDP of half a billion US$, where 45.6% of workers are employed in a single industry, wherein there are just two companies, 75% of whose employees earn less than the new minimum wage level; Therefore it would also be disastrous to raise minimum wage in an economy with a GDP of fourteen and a half TRILLION US$, where there are a couple of hundred different industrial sectors, representing over ten million employers, 2% of whose employees earn less than the new minimum wage level.

We know this, because there's really not a lot of difference between these situations. As long as you accept that:
0.5 is approximately 14,500;
1 is roughly 200;
2 is much the same as 10,000,000;
and 75% is pretty close to 2%.

:rolleyesa:
It's simply a matter of degree, not of kind. Bigger change, bigger harm. That doesn't mean a small change causes no harm even if you can't detect it above the noise floor.
 
That's the flaw in your thinking. You need statistics to reveal whether the null hypothesis falls within your confidence interval, and will tell you whether or not "the Samoan case" can be explained by the null hypothesis.

Right now you're just going by your gut feeling.
They raised the minimum wage, the economy crashed. It didn't crash next door where they didn't. Thus it's pretty much the only factor that changed. Economies don't just crash like that without a cause. Every major city in the developed world is a far bigger economy and you have a lot of samples (years in which the economy didn't crash.) p = 0.001 only requires 20 cities for 50 years, we have a much bigger data set than that. The statisticians could quibble about how many zeroes there should be, but a ballpark answer is plenty good enough to see it's not reasonably by chance.
 
They raised the minimum wage, the economy crashed.
Are you trying to move the goal posts? In a previous post we were looking at change to unemployment levels, not "the economy".

BTW I am still stuck on my phone and would still appreciate a link to the relevant facts and figures.
 
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