Food for thought

The flaw in that very simplistic view of a very complex issue is belied in the case of Bob's wage.

Bob generates $10 of profit from an $8 wage. His wage now rises to $9, so Edgar's profit from Bob's labour drops from $2 an hour to $1 an hour.

THE VIDEO CLEARLY STATES THAT THIS IS ACCEPTABLE. EDGAR IS STILL MAKING $1 PROFIT FROM BOB'S LABOUR.

The first sentence in the above paragraph is important, so memorise it. It means that Bob's labour cost is less than the revenue generated, and Edgar still makes a profit, and he is happy to keep Bob in the workforce because Edgar likes employing local people.

From Edgar's point of view, he wouldn't split each individual's wages up, he would add them all together to give TOTAL COST OF LABOUR.

Here's how it works, in simple arithmetic.

Old System
Simon's wage $3, revenue generated $4
Bob's wage $8, revenue generated $10
Vicky's wage $15, revenue generated $23

Total cost of labour = $26 ($3 + $8 + $15)
Total revenue generated = $37 ($4 + $10 + $23)
Edgar's profit = $11 ($37 - $26)

New System
Total cost of labour = $33 ($9 + $9 + $15)
Revenue generated = $37
Edgar's profit = $4 ($37 - $33)

Now, some of you might be thinking why should Edgar take a cut like that. The answer is in the video itself. Edgar likes employing local people (so the video states). This is backed up by Edgar being happy to keep Bob employed while Edgar only makes $1 from Bob's labour.

If Edgar really does like employing local people, he should be more than happy to keep employing Simon, Bob and Vicky. Edgar is still left with $4 which is four times the amount he makes just from Bob, which Edgar is apparently happy with.

Of course in the real world, if Simon still makes only $3 an hour, people like Seasoned (and Bob and Vicky) will have to pay taxes which go in food stamps and other welfare benefits to keep Simon alive.

It is in the best interests of Bob, Vicky and Seasoned if Simon was paid a wage he can actually live on. That would reduce the need for Simon to collect taxpayer's (Bob, Vicky and Seasoned) money in the form of welfare and food stamps, etc.

If this was replicated across a whole state or nation, the need for welfare would be reduced, and Bob, Vicky and Seasoned could all get tax cuts. Heck, even Edgar could get a tax cut (assuming he pays taxes in the first place).

What if the video isn't telling the truth about Edgar though. What if Edgar couldn't give a rats arse about his fellow citizens (as per the teachings of Ayn Rand*).

He'd then sack Simon, Bob and Vicky and move his factory to Fascistland, where he doesn't have to pay wages at all and no taxes either. (This is happening all over the world right now).

What that means is Seasoned has to work twice as hard, and have more of his money taken in taxes to pay for the increased welfare bill needed to keep Simon, Bob and Vicky alive.

Seasoned would then be cursing himself for believing the fascist claptrap contained in this video and not voting to increase the minimum wage of those other people.

Ultimately, poor old Seasoned will have his wage cut to just above slavery levels as well. By that time, Simon, Bob and Vicky won't give a flying fvck about Seasoned, since he was responsible for putting them into poverty. They will no doubt rejoice in the knowledge that he is getting a taste of his own medicine.

Now there really is some food for thought.

* The great irony of Ayn Rand's life is of course that, at the time of her death, she was living off welfare payments. She was one of the parasites she railed against in her long winded, tedious paeans to selfishness and greed. Why her acolytes continue to put her on a pedestal is one of life's great mysteries.