Sunday, 4 December 2011

Free trade and the wage bond

In the free trade an actor stands in a cell in the shackles of those who have real economic freedom. The wage-slave is a player for the interests of the employers union at times and for the trade unions at times and for the push and shove of their powers for the rest of the time.

There is never any freedom in working for wages. With the possible exception of high earners who can afford shares and sharing in on profits.

In the freelancer  world, on the other hand, there is so little stability and  no ladder for progress. Perhaps the virtue of freelancing is in a rsome measure of equality.

Race of labourers

To be ever better at work in comparison to other labourers
A profit boosting effect.

To run to work
For the fear of losing the bonds of wage-slavery - the dependence on fear of starvation and dereliction.

The lineage of workers and their working children
Entry to middle classes through education is possible to all members of families where the subsistence of children can be facilitated without recourse to child labour.

Armoury Green Terror

One possible reason for the high rates of higher education in soviet economy was compulsory military service.

Some European countries have eliminated national service and created a mercenary army.

They seem to have lowered such stress.

Economic evolution and economic inequality

The stretch between the poor and the rich is itself a cost to the economy. Richard Wilkinson's talk on TED.
Will economies, as part of their evolution, develop entities regulating efficiently the reduction of this divide?

In theory this should happen because the inequality and large divide is a cost to all sectors of income. So the affluent minority has it in their interest not to drive the divide too big while having a drive to increase their personal opulence that becomes the affluence. So philanthropy is one mechanism. Though can it cause enough of reform? Progressive taxation another. Reduced entry to means of production another(Open Source Ecology, Free Patents, FOSS electronics, Kahn education). End poverty drive another.

Robert Nozick talks of the increase of the middle classes in free trade economies. Echoing the same idea.

Mutual self-interest seems to be there to serve the mechanism of reduction of inequality.


Cost mechanism and Price mechanism

For one person a cost another a price, the price mechanism is therefore also a representation of a cost mechanism. However the mechanism of reducing costs and those who can reduce costs better while keeping labour effectively engaged can be a positive reason why a system with an ecology of economic actors, free trading individuals, is more likely to survive than a single system (eg planned economy).

While writing this I realised that the economic actors could in fact be entire economies, so explaining Chinese two economy system. Would China be ready for a three economy system?
Countering that is that Chinese World recession time success is their strong position in investment friendliness period or in other words high exploitation of their workers on the world pay scales.

Some costs are caused by the environment eg, bad air quality or salty waters while others are borne of interactions between economic players or the structures of the production itself.