Vanishing Labour and Liberalism

Who is a "Liberal"

A frequently heard story of our labour market is the following: under ideal circumstances, every kind of job yields an equilibrium wage that is proportional to the marginal disutility of the work done in that job. If the work is hard, uninteresting, difficult, dirty, the wage will be high; if it is easy, fascinating, clean, the wage will be low. This is not in fact what we see around us. In our world, bad work pays badly, and good work pays well. It is amusing to collect the explanations given for this, but instead of reporting on that here, let us look at Eu: at the time before the introduction of the Labour Right-price system, bad work might have been paid badly, and good work might have been paid well. But at the moment of the introduction of Labour Rights possibly an era in which Eu was an "affluent society with high rates of unemployment - in which a popular demand for basic income had been taking shape under the pressure of a deep feeling of injustice", employers suddenly experienced a drain of applicants for bad jobs, and understood they needed to redistribute the wage sums of their firms in such a way that there would be a suitable applicant for every kind of job. Thus, in Eu, every kind of job really yields an equilibrium wage (after deduction of Labour Right-cost) that is proportional to the marginal disutility of the job's labour.

Let it be mentioned in passing that for many employers in Eu it may have been much cheaper to improve job quality than to pay the high wages needed to motivate a person to enter a bad job.

The Labour Rights hit holes in the walls between the segments of the labour market, because letting yourself buy out a job yields the same sum for every job in every segment. Thus, the labour preference of all able-bodied adult citizens works through the price of the uniform Labour Right on the wage for jobs for which they do not have the capacities. This way income and employment, the new scarcity, is distributed in an economically optimal way over all able-bodied adult citizens.


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