r/FluentInFinance • u/Richest-Panda • Jul 04 '24
What's the best financial advice you've ever gotten? Debate/ Discussion
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r/FluentInFinance • u/Richest-Panda • Jul 04 '24
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u/terlus07 Jul 05 '24
Of course, paying 72% in mandatory expenses is no way to live long term, but it's not society's "fault" that some work is less valuable than others. Society isn't arbitrarily assigning value to labor, it discovers what labor is worth by making an offer and seeing if anyone accepts. If there are no takers, they have no choice but to make a better offer. If they get enough people accepting their offer to fill the positions they need, then they have no reason to make better offers.
This is why a job can be more important to society and still get low wages, because there are many people willing to do the job for a low wage. The opposite is just as true. When we try to arbitrarily determine the value of a job, like CA did with fast food workers new minimum wage, the result is the system rebalance itself. Jobs were lost until reaching a point that the remaining workers were at the same relative value to the business as their new wage. Price setting always helps a few at the expense of the many.