I love the idea of waking up to life that I could afford working 40hrs a week while also seeing success across generations and multiple cultures, here in the U.S (also in the whole world but let's keep it to U.S for now). But I think the economic model does not allow it. I would like if someone could provide me with their insights and feel more hopeful for a change.
Here's what I see being impossible. Say, for the sake of easy math, the living wage (to afford a home, working 40hrs, a week vacation, medical access, savings, and retirement accounts for when we grow old, etc) came to be $50hr to start with. Now, if an individual today makes that, immediately he's living the dream but if everyone makes that, that $50hr becomes the new $10hr.
Here's why I think so; Say corporate greed wasn't a thing at all. Now, to accommodate for everyone making 50hr, prices would have to adjust accordingly from food, basic services, housing, and even leisure. Even a small self employed individual at a farmers market would have to increase to adjust to his new expenses, for he is also a consumer, without being greedy. Now, there IS corporate greed so that make things even worse. Look at what happened with the employee shortages situation. People “revolted” and even fast food started paying 15hr and now that many many people make that much or about, things have gone so expensive there seems no difference between 15hr from 7.25 to 10hr before. It ended with corporations making even more and 15hr turning into ashes. Simply a new high minimum wage does not look like it would work as a solution
Okay, how about our laws? The same laws that protect us as individuals, protect business owners, entities, and etc. Our government can't dictate how much a company or owner makes. The supply and demand does that in our free market. If one sells oranges for $1 a piece, likely will sell more than one who sells them for $5a piece, even if the latter has ethics and wants to compensate better their employees. Consumers dictate and make the rules and providers adjust to compete and then partake in the consumerism. Now If the government start taking over that, we have a worse problem immediately. We've seen countries where they nationalize companies or industries and it goes to badly because, again, corruption is also a thing and lack of incentive is another. Communism for example, in ideal terms, promotes the idea of a same class by taking the capitalist “pigs” out of the game. And everywhere that's been practiced, it has not worked for good reasons. It ends in everyone even poorer and co-dependent on a government to afford survival, not a living wage. It also lead to totalitarianism since the government control the economy completely.
Lastly, our own human nature does not allow it. As a person who is responsible for 4 boxes, you want to be compensated more than one who is reponsible for one, even in the same company. Let alone accross industries. If I can make a living wage working deliveries, why would anyone ever care to be a idk an accountant or a doctor? And if there then is a different in compensation we go back to what we have, just with higher “in theory” numbers.
Lastly, I'm not here to advocate against a better minimum wage, or to even think there shouldn't be a work reform. I just am, confused as to how that could even be possible. (I'm not an economist obviously). I'd like your opinion or references. Thanks everyone and have a happy weekend!