Re:What harm do minimum wages do?
by shirakawasuna on Wednesday August 19, 2020 @07:48PM
(#24218241)
No? If value isn't defined as the price at which the product is selling (could easily be above cost), what is it in basic econ?
1. Worker(s) make a thing.
2. Worker(s) sell a thing.
3. All the above worker(s) (if there's more than one) receive a portion of the proceeds. If it reflects their actual contribution to that thing at its selling price, it's their marginal product of labor, putting aside things like reinvestment and power imbalances. This leaves nothing left over for profits, for owners / investors to take, who did not contribute the labor to production (otherwise, they'd also be workers and we'd call that part of their compensation, not profit).
What defines value is a matter of debate in econ but labor theory is only believed by Marxists these days.
Re:What harm do minimum wages do?
by shirakawasuna on Wednesday August 19, 2020 @10:54PM
(#24219390)
This isn't even labor theory of value...
Re:What harm do minimum wages do?
by dragonwriter on Thursday August 20, 2020 @06:31AM
(#24221811)
> You're assuming whatever the worker produces is sold at cost
It must be, in the same idealized (free, perfectly competitive, no transaction costs) market conditions being discussed.
> This sentence is just wrong. First of all a rational actor will not intentionally pay a worker the value of their production; you get no profit.
It's correct. You're assuming whatever the worker produces is sold at cost.