Labor - Equal Pay
Of labor, raw materials and loans, labor is going to be the most difficult to price when the economy is close to full employment. If businesses and employees are allowed to negotiate wages when unemployment is low, the result would be ever-increasing wages. Employees would have the upper hand because businesses would find it hard to find employees. Employees could threaten to leave if they don’t get raises, or simply accept a job elsewhere from an employer who is willing to pay more. Businesses would then just pass the higher wage costs on in their prices and the result would be inflation.
The only workable solution is to constrain how wages are set.
While there are many possible approaches, I start with the egalitarian goal of wanting to reduce the gap between the rich and the poor as much as possible. If it were practical, I would pay everyone the same hourly rate. I would use an hour’s work as the base for the currency, which could be called the workhour. All workers would receive one workhour for each hour they work.
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