catallaxy files

catallaxy in technical exile

Lets stop junking people

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What if there was a minium price law for cars? Say $8,000?

What would happen to all the servicable but not very new or flashy cars that nobody is prepared to pay $8000 to own?

I suppose they would have to be junked, or just left sitting in the street or the back yard.

That is happening to people who are slow, with minor physical and mental or intellectual handicaps, and people who are untrained and lacking experience, or all of the above. And some of the most caring people around are all in favour of the minimum wage legislation that croduces that outcome.

The problem is also aggravated by the effective tax rate for people on welfare benefits who start to earn some money.

What if some clever people spent an hour or two working out how to adjust the wage laws, taxation and welfare system to permit:

(a) employers to put on a person at a price that they can afford to pay for less productive workers, bearing in mind the oncosts of employment.

(b) the workers to have enough extra cash in hand (after tax and adjustment of benefits) to make it worth their while to work.

Some of the people who I envisage in this scheme would need to have a mentor to assist in negotiating the pay and conditions and I don’t mean a standover man from a union theatening a strike, but a person who is looking for a win/win outcome .

There would also have to be a provision for each party to terminate the arrangement at short notice if it was not working out.

What if we stop junking people?

In response to a some comments:

Tony, you have missed the point. It is not about minimum standards for safety of cars or roads, it is about who should be permitted to set the price of the car.

Or the payment or a worker. There are still simple put and carry jobs that could be done by able-bodied intellectually handicapped people (for example). What is your objection to allowing them to work for a wage agreed between them (plus a helper) and an employer?

Don you are correct but that does not refute the argument that the wage should not be set by some distant tribunal, rather by the people engaged in the business. Sometimes pay reflects merit, sometimes it does not. That is a separte issue from getting unemployed people back to work at a price that is affordable to employers.

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Written by Admin

April 7, 2006 at 9:25 am

Posted in Uncategorized

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