- Joined
- May 22, 2012
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- 104,363
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- Location
- Uhland, Texas
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- Political Leaning
- Libertarian
Free trade of labor draws more competition at the bottom of the economic ladder, which predictably lowers wages where it becomes more competitive.
The free trade of labor is good for the economy, it just has to be balanced. When we don't have any competition at the top of the economic ladder, an industry giant who is the only game in town can cut wages without suffering a mass exodus.
Not without a "safety net" or those used to third world living conditions - otherwise who could afford to work for less than they need to live on?
The beauty of the "safety net" is folks that need $X/month do not care how much of that $X comes from a meager paycheck and how much is added by the "safety net". Rather than an employer having to offer all workers a "living wage" (far lower for those willing to live in third world conditions) they can offer far less because those that are deemed more needy (qualify for "safety net" assistance) get the balance handed to them.
It is less expensive for a "job creator" to pay a bit more in taxes (to support a "safety net") than to pay all workers more to avoid the need for that "safety net". BTW, we just saw a huge tax cut for those "job creators" so who does that leave to fund the (ever growing?) "safety net"?