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    • Preface
    • Overview
  • Political Economy ▾
    • The Economy
    • Commodities
    • The Enterprise
    • Accounting
    • Capital
    • Profit
    • Employment
    • Distribution
    • Wages
    • Interest
    • Prices
    • Money
  • Economic Policies ▾
    • Five main principles
    • Cleaning up the capital market
    • Cleaning up the labor market
    • Liberating civil society
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    • Original Documents
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Home› Part II – Political economy propositions›Chapter 9 - Wages

Chapter 9 – Wages

In economics, wage is the generic name for all income from labor, which is itself distinct from saving placement income.

Wages are the subject of two iron laws. OneProposition_8_4 is that which determines total labor income by the distribution of total income (previous chapter). The other is also distribution, but only of total income from work.

As much as the distribution of working time is an illusion, which can only turn into the sharing of structural unemployment before contributing to its aggravation, the sharing of total labor income is a reality. The inequalities and inequalities of wage levels by professional qualification and then of individual salaries govern this sharing. The denial of this reality has, of course, its reasons for being, the first of which are the following two:

  • It is impossible to fit the true determination of the prices of labor, with all its specificities, into a scheme in which all price formations are explained in the same way.
  • Admit that the highest wages lower the average level of those below them contravenes such a scheme.

The invisible hand is more subtle. It introduces into the economic system levers of command that the social body can, country by country, push and pull so that marketable exchanges produce the effects it wants. But the progress that will be made by the conscious use of these levers is only achievable. As long as economic theory and policy leave this progress unaccomplished, remedies that aim to relieve the social body in order to ultimately degrade its health will come out of the Pandora's box of redistributions forced by the legislator.

Propositions

  • 9.1 Let's call wages all income from work and nothing but income from work.
  • 9.2 The status of employee is not economically defined by a relationship of subordination.
  • 9.3 The average hourly wage varies by country according to the total labor income of the country in question.
  • 9.4 The employer's share of the contributions that are based on the wage is a damaging fiction.
  • 9.5 Making salaries comparable within a country improves the functioning of the labor market.
  • 9.6 Hourly wage differentials regulate the distribution of total labor income.
  • 9.7 Governing the distribution of total labor income is the responsibility of collective subjectivity.
  • 9.8 The price adjustment of supply and demand for employment is only complementary in the setting of wages.
  • 9.9 The compensation for the low wages with redistribution is a temporary solution
  • 9.10 Employment subsidies reinforce disabilities and distort particularly important prices.

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