Oh, first off to be clear the wealth is transferred to the shareholders, not the CEO (though the latter is often the former). I can’t recall if I was trying to be evocative by saying CEO, or if it was just a slip of the tongue. Skill issue.
Cart pushing might sound like a silly example, fair enough. Though here it’s important as a debate battleground for the reality of labor struggle, I really doubt customers pushing carts is going to decisively shift the balance of power & destroy western civilisation. There is also the fact that the people doing this work might not be aware of their interests, and might get annoyed by people leaving carts out. That does harm.
You’re right that in theory the externality is split between the customers & shareholders. However, in reality when the costs are reduced the shareholders are generally able to pocket the difference as profit, since customers don’t have access to perfect information about how they’re being screwed. In theory this is counteracted by the free market’s ability to produce efficient prices (competitors will compete). But in reality it isn’t: Look around. Everything’s going up. They’re taking it.
It sucks that there’s low quality work. But what do you think will happen if that work isn’t available? If someone had that job, they could pay for rent & food. Without it? They will starve. That’s what happened in the 19th century. They. Just. Died. We, fortunately, haven’t seen what that looks like because the west is broadly still protected by the social welfare systems built in the 20th. My friend worked as a Walmart cart pusher, without that job he’d have had nothing.
Oh, first off to be clear the wealth is transferred to the shareholders, not the CEO (though the latter is often the former). I can’t recall if I was trying to be evocative by saying CEO, or if it was just a slip of the tongue. Skill issue.
Cart pushing might sound like a silly example, fair enough. Though here it’s important as a debate battleground for the reality of labor struggle, I really doubt customers pushing carts is going to decisively shift the balance of power & destroy western civilisation. There is also the fact that the people doing this work might not be aware of their interests, and might get annoyed by people leaving carts out. That does harm.
You’re right that in theory the externality is split between the customers & shareholders. However, in reality when the costs are reduced the shareholders are generally able to pocket the difference as profit, since customers don’t have access to perfect information about how they’re being screwed. In theory this is counteracted by the free market’s ability to produce efficient prices (competitors will compete). But in reality it isn’t: Look around. Everything’s going up. They’re taking it.
It sucks that there’s low quality work. But what do you think will happen if that work isn’t available? If someone had that job, they could pay for rent & food. Without it? They will starve. That’s what happened in the 19th century. They. Just. Died. We, fortunately, haven’t seen what that looks like because the west is broadly still protected by the social welfare systems built in the 20th. My friend worked as a Walmart cart pusher, without that job he’d have had nothing.
Edit: ok basically you. Mr Walmar, cuck chair