Democratic Socialism Is the Scenic Route to Serfdom

Dec 2018
4,922
1,344
New England
Left-wing logic:
  • Trump's trade wars are bad for the economy because the higher prices mean people buy less stuff.

  • Increasing the price of labor never means employers buy less of it.
 
Nov 2018
5,549
3,019
Rocky Mountains
It is a fundamental law of the discipline you're ignoring that, all other factors being equal, a rise in prices will create a decrease in demand. This law is immune to scary stories of Dickensian-era child labor and stands firm in the face of overwrought emotionalism. The two articles about McDonalds's decision to begin substituting automation for jobs, which you also chose to ignore in your reply, demonstrates this.
Actually that neat concept of economics is, as Einstein would say, simpler than possible and does not explain many many aspects of markets such as monopolies, "illogical" consumer actions, wide fluctuations, and unpredictable events ("black swans").

Alas, I think I may have a better grasp on that history as I have an awareness of the times when, despite intentions, "government stepping in" does not make life better and instead makes it worse.

Lastly, and I say again, you cannot separate the cost of labor from the value of labor for very long. The capital required to keep that job-sustaining enterprise going will ultimately go elsewhere. I suspect like the rest of us, you make price-sensitive purchasing decisions every day. Those who run large organizations are no different. By ignoring this risk you're not helping people at the low-end of the wage scale; quite the opposite.
So, NatMorton you recognize that unsafe working conditions, child labor, salary and wage abuses CAN occur but you do not attribute them directly to capitalism?
 

RNG

Forum Staff
Apr 2013
40,311
28,184
La La Land North
Actually, gas sales are not immune to price variations. I get weekly data on this from an oil and gas economic consulting service, but that comes in a format too ugly to post. But here is a graph that shows it much better.



Sorry the graph is so fuzzy. You can see it here better: Gas & Driving
 
Dec 2018
4,922
1,344
New England
So, NatMorton you recognize that unsafe working conditions, child labor, salary and wage abuses CAN occur but you do not attribute them directly to capitalism?
Correct, I do not directly attribute them to capitalism and believe only one looking to deceive, or who is otherwise ignorant of human history, ever could. Those ills have appeared in many different economic models/societies from monarchies to Marxist states.
 
Dec 2018
4,922
1,344
New England
Actually, gas sales are not immune to price variations. I get weekly data on this from an oil and gas economic consulting service, but that comes in a format too ugly to post. But here is a graph that shows it much better.



No one is arguing that price is the only factor influencing demand.

For example, gravity doesn't take a break when an airplane attempts to take off. Other, stronger forces cause the plane to rise.
 
Nov 2018
5,549
3,019
Rocky Mountains
Correct, I do not directly attribute them to capitalism and believe only one looking to deceive, or who is otherwise ignorant of human history, ever could. Those ills have appeared in many different economic models/societies from monarchies to Marxist states.
Firstly, capitalism is an economic system. Marism and monarchies are political ideas. So what caused 19th century employee abuses? Socialism?
 
Dec 2018
4,922
1,344
New England
Firstly, capitalism is an economic system. Marism and monarchies are political ideas. So what caused 19th century employee abuses? Socialism?
First, yes, I know that; read my post again.

Second, the same thing that led to slave labor in the socialist USSR: a failure of law.