21seasons's avatar
21seasons 1 year ago
Ok, I see that as a necessary and important part of the economy. Example: You have a company and have more work to do than you can do by yourself, so you want to offer a productive job for someone with the needed skills. Let say there's a $100 job. You as an emloyer need to calculate the correct pay for the employee so that your company can get the job well done + get some profits. You would not pay that $100 directly to the employee, right? You as a ceo of your company take a multiple risks running the company and it's not charity so your goal is to make some profit and with that profit you plan to expand and employ even more people, which is very good for the economy, right?

Replies (2)

Right, this is a very good approach, but... The fact remains that even if you don't want to steal the worker, you still steal the worker because you keep the surplus for yourself. It is the system that works this way. Moreover there is a risk on the side of the worker too, a risk that quite well be bigger than any businesses owner or ceo will take, especially if the worker does a dangerous job.
21seasons's avatar
21seasons 1 year ago
You don't keep that surplus for youself, it's for the company profit and company profits have 3 very important functions in economy (we can talk about them also). About the risks. If the company fails you get bankrupt, but the worker is not, they got paid as was negotiated all the way. You as an employer need to also do work to find a suitable worker, a work that doesn't pay unless you find a worker that is willing to work for you and will succeed at the job. If the job is dangerous, you would need to pay higher wage and do more work to find a worker with suitable skills and willingness to work for you. The worker can always start a business and work for themselves, but there's definitely many reasons why many workers decided to work for someome else. You have interesting way to look at this, I almost thought the same before I started studying austrian economic theory. Do you believe that every company should be non-profit?