Re:What harm do minimum wages do?
by machinelabo on Wednesday August 19, 2020 @04:58PM
(#24216356)
This is an unbalanced opinion of free markets (but I generally agree with downsides of unregulated capitalism).
> Profit. That is all.
Free markets also have intense competition so "Profits" that you talk about don't just go out of control - Prices are set at the intersection of supply and demand curves. Companies would need to shave off profit margins to stay competitive.
I think it is fair to say that there are no ideal free markets. There are always asymmetries, downsides, side cashing and a whole bunch of complexities in any market - nothing is ideal.
So, we should have regulations that control those asymmetries.
> Profit. That is all.
Free markets also have intense competition so "Profits" that you talk about don't just go out of control - Prices are set at the intersection of supply and demand curves. Companies would need to shave off profit margins to stay competitive.
I think it is fair to say that there are no ideal free markets. There are always asymmetries, downsides, side cashing and a whole bunch of complexities in any market - nothing is ideal.
So, we should have regulations that control those asymmetries.