Government Intervention In Labor
Government provision of labor protections such as minimum wage
By Pierre Belhomme
January 24, 2011. Revised January 26, 2011
Employment in the Free Market
The employment free market seems to consist of the trading of resources by community members in exchange for the assistance of other community members. An important employment free market principle seems to be that the amount of appropriate resources that should be traded for such assistance is determined by the intensities of the employer's need for assistance (demand) and the resource needs of the people who are willing to provide assistance to the employer (supply).
Setting Employment Prices in the Free Market
The self-interest principle of the free market would seem to suggest that potential employers would seek the lowest employment cost and potential employees would seek the highest possible pay rate. Presumably, their desire to consummate the deal would drive their offers closer together until they match. This seems suggested to be the correct free-market price.
This uncoerced, voluntary (and therefore, it seems "free") decision-making by the potential employer and potential employee seems suggested to be able to help determine employment prices even as market conditions -- the relevant circumstances of the potential employer and potential employees -- change.
Business Aversion to Government Intervention in Labor
Employers apparently reported aversion to government intervention in business beyond government’s enforcement of business rights seems to include government protection of labor interests such as minimum wage.
Rationale for Government Intervention in Labor
Perhaps government intervention in business for the purpose of providing labor protections such as minimum wage has developed as a response to some businesses inappropriately manipulating market and community circumstances in order to realize circumstances that favor the interests of those businesses. Businesses, for example, might seek to so disadvantage the circumstances of potential employees that workers would willingly work for wages lower than they otherwise might require. the free market guideline of setting wage prices at the lowest level required would find workers whose circumstance is so that they would willingly work for wages lower than they otherwise would.
Manipulation of the Employment Market by Market Participants
In our history, both employers and employees have seemed both willing and able to impact markets beyond their basic supply and demand roles by manipulating circumstance to create a set of circumstances under which rational reaction by others would favor the manipulator of the circumstance.
Regarding government intervention in employment marketplace dynamics for the purpose of providing labor protections such as minimum wage, perhaps market participants inappropriately manipulate market and community circumstances in order to realize circumstances that favor the interests of market entrepreneurs so that the free market guideline of setting wage prices at the lowest required would find requirements lower than would otherwise exist without that manipulation.
Free Market Adjustments to Market Conditions
It seems that participants in the employment free market are expected to react in their own interest to changing market conditions. The self-interests of market participants are expected to balance each other, creating what is referred to as market balance. For example, if an entrepreneurs' need for assistance increases and decreases, it seems to be suggested that the value of the assistance he seeks has increased. He is, therefore, generally expected to offer a greater amount of resources per person to entice others to stop what they're doing and assist him.
Importantly, here, the term "demand" seems to refer to unmet need.
Government provision of labor protections such as minimum wage
By Pierre Belhomme
January 24, 2011. Revised January 26, 2011
Employment in the Free Market
The employment free market seems to consist of the trading of resources by community members in exchange for the assistance of other community members. An important employment free market principle seems to be that the amount of appropriate resources that should be traded for such assistance is determined by the intensities of the employer's need for assistance (demand) and the resource needs of the people who are willing to provide assistance to the employer (supply).
Setting Employment Prices in the Free Market
The self-interest principle of the free market would seem to suggest that potential employers would seek the lowest employment cost and potential employees would seek the highest possible pay rate. Presumably, their desire to consummate the deal would drive their offers closer together until they match. This seems suggested to be the correct free-market price.
This uncoerced, voluntary (and therefore, it seems "free") decision-making by the potential employer and potential employee seems suggested to be able to help determine employment prices even as market conditions -- the relevant circumstances of the potential employer and potential employees -- change.
Business Aversion to Government Intervention in Labor
Employers apparently reported aversion to government intervention in business beyond government’s enforcement of business rights seems to include government protection of labor interests such as minimum wage.
Rationale for Government Intervention in Labor
Perhaps government intervention in business for the purpose of providing labor protections such as minimum wage has developed as a response to some businesses inappropriately manipulating market and community circumstances in order to realize circumstances that favor the interests of those businesses. Businesses, for example, might seek to so disadvantage the circumstances of potential employees that workers would willingly work for wages lower than they otherwise might require. the free market guideline of setting wage prices at the lowest level required would find workers whose circumstance is so that they would willingly work for wages lower than they otherwise would.
Manipulation of the Employment Market by Market Participants
In our history, both employers and employees have seemed both willing and able to impact markets beyond their basic supply and demand roles by manipulating circumstance to create a set of circumstances under which rational reaction by others would favor the manipulator of the circumstance.
Regarding government intervention in employment marketplace dynamics for the purpose of providing labor protections such as minimum wage, perhaps market participants inappropriately manipulate market and community circumstances in order to realize circumstances that favor the interests of market entrepreneurs so that the free market guideline of setting wage prices at the lowest required would find requirements lower than would otherwise exist without that manipulation.
Free Market Adjustments to Market Conditions
It seems that participants in the employment free market are expected to react in their own interest to changing market conditions. The self-interests of market participants are expected to balance each other, creating what is referred to as market balance. For example, if an entrepreneurs' need for assistance increases and decreases, it seems to be suggested that the value of the assistance he seeks has increased. He is, therefore, generally expected to offer a greater amount of resources per person to entice others to stop what they're doing and assist him.
Importantly, here, the term "demand" seems to refer to unmet need.
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