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Source link: http://archive.mises.org/13368/wages-and-subsistence/

Wages and Subsistence

July 23, 2010 by

The horror of starvation no longer terrifies men living in a capitalist society. He who is able to work earns much more than is needed for bare sustenance. FULL ARTICLE by Ludwig von Mises

{ 3 comments }

Seattle July 25, 2010 at 3:27 pm

Beautiful!

billwald July 26, 2010 at 6:52 pm

“On the unhampered labor market wage rates always tend toward the point at which they coincide with the marginal productivity of labor.”

That means “fall to,” not “rise to.” These days much “manufacturing” is done by numerical control machines and all the people do is serve the machines. How little can we pay and still hire a person who can feed blanks into the machine and remove the finished parts? Will a serf in Bangladesh do this task for $1/hour? What are the shipping costs and the lead time to get parts? Why should we pay US minimum wage plus benefits?

Russ July 26, 2010 at 7:07 pm

A beautiful argument against minimum wage laws, Bill! Kudos!

Seriously, though, what should be done? Prevent corporations from using foreign labor altogether through punitive tariffs? All this will do is spur other countries to enact similar tariffs against us, thus killing any foreign market for goods produced here. Is getting some workers laid off to keep the wage levels of other workers really what you had in mind? Because that’s what wage controls do.

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