Lord Herbert wrote on Nov 5
th, 2013 at 2:22pm:
Yes ~ of course.
And as an economic system nothing better has ever been invented to replace it.
No worker is ever given a wage that is worth what his output will be sold for by his employer.
This is due to
time preference.
What is a pizza worth but what someone is willing to pay for it and what is the workers wage worth than what they are willing to accept?
But let's look at a pizza, ignoring the massive capitalist style chain of ingredients being created and traded that allows it to happen, let's look at the end product. The maker uses the ingredients to create the pizza. Let's say it's sold for $10, this $10 represents many things it would be selfish to pay the pizza maker $10 for every pizza( the output price) they make because this leaves out; the cost of the ingredients (which had to be farmed and manipulated into the mince etc), the guy selling the pizza over the phone and the guy that delivers the pizza.
What ignorant person would propose that the maker or worse yet the delivery driver receive the full amount the pizza is sold for? His single contribution is one of many and it is not solely what the monetary cost represents. (Labour/time/energy/resource costs) Ignoring the supply chain, and every co-worker that makes that pizza possible you are ignoring the store owner. "But he is just a capitalist pig exploiting the workers!", did the workers pay for the store?
Did the workers pay for the equipment? Did the workers draw up the business plan that allowed it to be successful? This goes on and on and on, then you might say "the share holders they've done nothing", well people that buy the company they are essentially paying for what the owner thinks it's worth collectively adding all of these aspects together including potential future productivity/profit.
The pizza delivery guy should be thanking the owner, because without that planning, without that management of employees, without any of those many contributions, this guy wouldn't have a job in the first place so instead of creating a pizza, marketing the store on a website, taking care of all callers, delivering the pizza and organizing profits back into the company to grow, the worker accepts the wage for his/her contribution and that's that, to expect otherwise is; illogical, irrational, egotistical and ridiculous.
The biggest thing you guys forget about free market capitalism is EVERYONE becomes a capitalist, every worker, every person that owns something and does something is a capitalist. It isn't some strange notion of business owners vs employees, you can make your own business and see what's it's really like, you can be self sufficient but obviously trading and co-operating with 7 billion other human beings is a lot more beneficial.