Economists tend to fall into one of two camps on minimum wage. One camp, the classically liberal, view minimum wage as always above the equilibrium price since someone will always work at a lower price than the one mandated by government. The other camp, the heterodox, view minimum wage levels as a function of the prevailing labor market, in which it is a minimum set so low that few people if any ever work for it.
Under this view, the minimum wage sets a benchmark which prevents workers from being as victimized by oligopsony and monopsony(few buyers of an input and only one buyer of an input). When there is no minimum wage, then the labor market in rural areas turns into de facto serfdom because the lack of employers means that labor is always undervalued. The friction between the company and the worker in the 19th century in rural areas led to the often violent confrontation between management and labor. Setting boundaries such as a minimum wage helps reduce this strife by keeping workers from being paid the lowest possible wage the market allows, while as the cost of keeping some of the least skill unemployed.
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My view perhaps is borne of being a wide eyed young silly idealist is this...(actually I got it from reading the book The Servile State by Belloc) is this.... back when England did NOT officially revolted against God and before the confiscation of the estates that belongs to the Roman Catholic Church the agreement between landlord both secular and clergy operated landed estates and tenants was that the owner of the land will tell his tenants I needed 1000 bushels of corn this season and once I met that goal you can have the rest for yourselves. I know that it worked for those not so greedy landlords but not for the greedy ones. My question is coming....
Now, fast forward to now.... my question is this - Is there such a wide discrepancy between what Belloc has related of the serfdom of the Middle Ages and our current economic situation?
Or in other words, can not that simple rule be applied today as well? Can we modify or update it to our here and now?
F/u question - Is there a way to work out a plan either individually or by the gov't. or at least supported by the gov't. wherein the principle of just distribution of profit (from the joint effort of labor and capital) be concretely applied in our here and now?
next question is this - what is the difference between an institution or organization that is non-profit vs. for profit in layman's terms... but explain the tax loopholes like the specifics (if or when you can) the criteria (minimum criteria) to meet the requirement for being considered non-profit... because I know of hospitals who say they are not for profit but they are not accepting charity cases... what is the mystery behind it?
Last question is this... if most Europeans wanted to get into America's free market and capitalistic economic system - because of competition and the lottery mentality to be able to better yourselves and become a millionaire or a Donald Trump or even a Bernie Madoff (just don't get caught or quit while you are ahead). What is wrong with our American Capitalist/Capitalistic system in a nut shell?
And if the EU is a Socialistic union already --- they should be happy and contented and be candidates for sainthood... but still they want what we have... - whatever that is?!?
And meanwhile us we want to become a socialistic state or partly socialistic... but aren't we already? Do we want a wholly---- fully Socialistic America? Or do we want a combo- or a flexibility that we can tweak as the need arises?
Now, I am deadly serious! I will hound you - LoL till you at least give a reasonable and sound solution/s or suggestion/s
You are to be blamed - as you introduced me to the world of economics and how it relates to politics... so... I'm just saying ... you've challenged me to think --- real hard... and now it bugs the heck out of me ---I am taking social sciences and i see the correlation and the connection --- I even see how philosophy and religion and different ideologies come into play.... so I am in too deep to pull away! I just need a little guidance and a sounding board now and then. Andmy now and then has come a pestering me --- and now I need to pester you! LoL
As always you can refuse... you always have the freedom and freewill to refuse...
PS
I highly suggest that you answer my question in like a series or one at a time... as I know I just bombarded you with all of these pesky questions.
Thanks so very much in advance :-)
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