tradeunionsupporter
9th May 2011, 16:10
Is Regulated Capitalism still exploitation of workers since the workers still don't own control and run the means of production ?
Myth: Unregulated capitalism does not exploit workers.
Fact: Without a wage floor, unemployment will drive entry-level wages below the poverty level.
Summary
Entry-level workers do not usually agree to their wages; they take whatever is offered. This is because there are more workers than jobs in the economy, and workers are in competition for those jobs -- the alternative is starvation. Employers often take advantage of this to let wages fall as low as they can get away with and still meet their needs. Allowing such a trend has historically resulted in greater income inequality. (The top half of the labor market operates by different dynamics from the bottom half.) Researchers have produced a broad body of evidence that higher levels of inequality are correlated with higher mortality rates. Thus, this sort of exploitation is deadly, and a violation of the right to life. Democratic government can stop this trend by regulating capitalism (through minimum wage laws, for example) and creating progressive taxes. Labor unions are an even more effective method in solving the destructive competition between individuals seeking jobs.
http://www.huppi.com/kangaroo/L-exploit.htm
Myth: Unregulated capitalism does not exploit workers.
Fact: Without a wage floor, unemployment will drive entry-level wages below the poverty level.
Summary
Entry-level workers do not usually agree to their wages; they take whatever is offered. This is because there are more workers than jobs in the economy, and workers are in competition for those jobs -- the alternative is starvation. Employers often take advantage of this to let wages fall as low as they can get away with and still meet their needs. Allowing such a trend has historically resulted in greater income inequality. (The top half of the labor market operates by different dynamics from the bottom half.) Researchers have produced a broad body of evidence that higher levels of inequality are correlated with higher mortality rates. Thus, this sort of exploitation is deadly, and a violation of the right to life. Democratic government can stop this trend by regulating capitalism (through minimum wage laws, for example) and creating progressive taxes. Labor unions are an even more effective method in solving the destructive competition between individuals seeking jobs.
http://www.huppi.com/kangaroo/L-exploit.htm