Posted by: graemebird | June 3, 2007

Licensing Is Silent Slavery (Get Off Our Backs) We Can Increase Real Wages.

By not admitting the superiority of the basic Austrian skeletal structure in economics economists have left us in a situation where issues are not being correctly prioritised. An aggressive libertarianism could increase real wages and very quickly and particularly at the low end of the market.

From a discussion on Austrian Economics over at Catallaxy:

I just googled human capital theory and got this:

http://faculty.washington.edu/jacoby/BLS345/%20HCtutorial.html

“Because the number of viable policy options for raising wages appears thin, much attention is given to education and training.

It is standard analysis to believe that skills gained through education and training can alter the wages individuals receive.

The logic of this statement relies upon the fact that skilled workers must necessarily be in lower supply relative to less skilled workers.
After all, any more skilled worker can always enter the labor market for less skilled work.”

The first sentence is such crapola that it wearies the eyes to read on:

“Because the number of viable policy options for raising wages appears thin…..”

This is just total ignorance. My bet is that this palooka is neo-classically trained. The options for increasing wages are LEGION!!!!

There is a never-ending supply of things that must be done here since when looking at the matter assuming a fixed nominal Gross Domestic Revenue everything you do to reduce living, working and production costs, amounts to an increase in real wages in a competitive environment.

Let me give you an example.

I went down onto the floor to pick up a couple of things. Then I saw the maintenance guys doing some programmed maintenance.

In order to do this we had closed down about one third of our production. So the costs were stacking up right there.

They had pulled this sophisticated machinary apart and one of them had attached something I hadn’t seen before to an air hose.

And he was going PISHIT PISHIT (rather unfortunate coincidence with the SOUND I’m trying to represent here)
PISHIT PISHIT PISHIT.

It looked like easy work but I couldn’t think what the hell he was doing.
So I asked him. And it turns out it was a greasing device. The attachment cost maybe $150 dollars. The job used to be done with two people and was clumsy as all get up.

MUCH OF AUSTRIAN ECONOMICS CAPTURED IN THIS ONE VISAGE.

1. The work was now easier. And programmed maintenance could have had one qualifed guy and two low-paid apprentices getting about doing this sort of stuff on the weekend without shutting down the machines. But interventions into the labour market discourage this.

2. Capital updates can make skilled work into unskilled work. So where’s the payback for this bogus “human capital” investment.

I could be doing a great chunk of their work on the weekends but I’m not allowed to. And as time goes on more capital investment of this humble sort would make more work accesible to people who are now by law and habit excluded and banished to compete with other low-paid palookas for the shit work.

3. With invariant nominal GDR we see that the economy typically progresses through cost cutting as a result of capital updates. Here one man can do more quickly what two men used to do at great hassle. And the job itself could potentially be done by someone less skilled.

4. I could be taught to do a great deal of these tasks. But the licensing requirements and regulations make this hazardous. Not for my or anyone elses health. But for the company since it can be prosecuted.

5. All this licensing bullshit creates a shortage in skilled tradesmans labour on the one hand. And this is not something that could ever be made up by Rudd-thievery.

And also this licensing throws people continually onto the lowest level of the labour market thus depressing low level wages. Libertarian types have to stop fixating on the minimum wage. We must get rid of that sure but there is a far larger ogre to beat. Licensing tosses people out of work at every level which ultimately depresses earnings at the low end. This is silent slavery.

6. The sheer number of worksites throughout the world with access to on-tap neumatic power is the only thing that could lead to this cost-cutting device that changes skilled labour into unskilled labour…… It is the extent of the international market alone that could give us this capital update at the affordeable price of $150.

7. Because of this…… models that Gruen and others have championed as making tariffs seem worthwhile are totally bogus and have a GDP orientation about them.

8, Also we see right here that the idea of the singularity is bogus. Because its only the extent of the market for microprocessors that allows MOORES LAW to be such a powerful thing.
With a GDR focus however we see that the sort of goods that companies consume in production do not have the same sort of unit sales numbers as the microprocessor has. And that therefore their equivalent of Moores law is far more glacial. But can be improved the further we internationalise the market. And the greater is the level of capital accumulation, capital updates. It is the ‘economic degree of capitalism’ which will ultimately determine how quickly we evolve and progress economically.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

“Because the number of viable policy options for raising wages appears thin…”

This is so stupid, insulting and ignorant that I’ve purposely not sorted out the miscreants name.

Every day millions of us in this country labour at artificially low rates of pay because of the level of ignorance displayed here.

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