Re:How to get kids to pay attention
by CryptoPunk on Monday July 02, 2018 @10:03PM
(#17446915)
If the supply of people able and willing to clean toilets is great compared to the demand for toilet cleaning service, the wage for toilet cleaners will be low.
We can redistribute profits from investors to low wage workers like the people who clean toilets, but the consequence of that is lower return on investment, and with it, lower rates of investment/economic-growth.
In the long, policies that lower economic growth rates are very detrimental to all classes of workers. What increases wages for people like toilet cleaners is high levels of production relative to population.
Investment is the mechanism by which we increase production, and profits are how 1. resources are distributed to those who are most effective at growing the economy's level of production 2. people are incentivized to invest to increase production.
There's no escaping economic laws, and no free lunch from policies that redistribute income from high income earners to low income earners.
We can redistribute profits from investors to low wage workers like the people who clean toilets, but the consequence of that is lower return on investment, and with it, lower rates of investment/economic-growth.
In the long, policies that lower economic growth rates are very detrimental to all classes of workers. What increases wages for people like toilet cleaners is high levels of production relative to population.
Investment is the mechanism by which we increase production, and profits are how 1. resources are distributed to those who are most effective at growing the economy's level of production 2. people are incentivized to invest to increase production.
There's no escaping economic laws, and no free lunch from policies that redistribute income from high income earners to low income earners.