reply to post by endisnighe
Uh, you pay a laborer a fraction of what they produce, as compensation; that's how capitalism works -- you have property, owners, and laborers.
If I own a kitchen, dough, water, and yeast -- I'll "hire" a cook; the cook takes my
ingredients and my
kitchen and he bakes (lets
say) 12 loafs of bread. For doing this, I'll give him 5 loafs (to do what he wants), and keep the rest (to do what I want with them).
Change loafs to USD, or gold coins, or whatever, and you have capitalism
The govt takes 2.5 of his loafs and 3.5 of my loafs. What's the problem?
On a side note, if you want lower taxes, a good place to start would be cutting the trillion dollars of foreign spending a year. Take a trillion
dollars a year out of the budget, and viola, taxes go down.. Not rocket science, is it.
/edit to add: If somebody cooks me bread with my
ingredients for only 4 loafs of compensation, I'll hire him instead; and if someone else
comes along and does it for 3, I'll hire him instead; and if someone else..
Eventually you'll get to a point where you're hiring the poorest and most desperate people who live in the most decrepit conditions imaginable, and
that kind of system is self perpetuating -- IE, when laborers compete against each other, it drives the cost of wages down -- they produce more for
less pay. That's called increasing efficiency. When you pay them less for more work, you can either pass on the savings to the consumer, or pass on
the savings to yourself (which, in the case of giving it to yourself, is called "maximizing profits.")
This is why, imo, unions serve a useful purpose, as do minimum wages. But what do I know -- I'm not an economist.
[edit on 27-4-2010 by Kaytagg]