Quote of the Day

Devastating insight? Unintended irony? Econmic acumen? You decide!

Gotta go with Kevin on this one. If companies can't afford to pay their workers minimum wage, they can't afford to be in business.

- Emma Anne, a commenter on Calpundit's post on
restaurant owners' desire to engage in voluntary exchanges

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They're not advocating for

They're not advocating for the abolition of the minimum wage, just for the legal discount of waiters' wages (to account for tips).

So its not really owners advocating for voluntary exchanges per se...

What is interesting is the assumption of the unchanging status quo- there are workers and there are execs and all stay the same in the zero-sum world, thus when one benefits the other suffers and vice versa. Nary a thought is given to whether more waiters may be employed or if lowering costs will allow for other expansions- its assumed a priori that anything not given to the Proletariat (er, waiters) will be expropriated by the bourgeois owner (er, padded to exec salary).

That may happen, of course, but its not at all clear why that is the only (and logical) outcome. Lower labor costs = greater bottom line, which opens opportunities for other business that may or may not be realized.

I wonder how the total payroll of the "lumpenArbeiter" vs. the Bourgeois Capitalist Masters compare? There is much talk about outrageous CEO & exec compensation, but just what kind of difference could be made by shrinking CEO pay?

Emma apparently believes she

Emma apparently believes she has the insight into what are the best decisions a business can make. She should start her own company and give it a go!

Perhaps an ironic inadverant admittance of economic reality? Or a subtle threat of Worker Revolution: the business can't "afford" the "costs" of not paying the workers what they want.

OTOH, its true in a Yogi

OTOH, its true in a Yogi Berra sort of way. If a company can't operate profitably under the thumb of government regulation, the owners are better off pursuing other endeavors.

Of course, I wonder if Emma is equally blase about losing restaurant choice and coverage due to these costs?