Much has been discussed about the fair wage. And many times it has been misdefined. What is the fair wage? The one that reaches for a decent subsistence? And why not to “live” with dignity, which is not the same thing? Because “surviving” is not the same as “living”.
So, we represent the needs according to the aspirations of each one and what it costs to achieve them to eat, dress, obtain a house, educate the children, the logical recreation, and how far these objectives are from being achieved by the majority of Argentines. .
It is here where politicians do not find the north to guide the compass that guides their decisions so that there really is, and finally, a “fair wage.” Although it is not the same for everyone, it allows those at the bottom of the social scale to “live with dignity” and satisfy their just needs.
We must realize that a good and better salary will never depend on political voluntarism, but on economic reality. Yes, but… how to achieve it? We must anticipate that it is within reach, not without effort and with true justice, the only one that exists, which is “to give each one what is theirs”, as Ulpiano defined it.
There are many who believe that the competitiveness of an economic system depends on the low wages paid, which favors the accumulation of capital that allows growth, and this is a mistaken concept. Let’s think about the salaries that are paid in the United States, in Europe, in Japan and now in China, in the liberated part, to realize that the concept that the worker must be paid less and little in order to compete and grow is so false like unreal.
The economic factors that allow better wages, economic growth and income distribution do not depend on politicians, rulers or trade unionists, but will happen “despite them”. Things are so well done by natural laws that fair wages and fair distribution are achieved without the need for laws of Congress and controls, because unnatural dirigisme has always failed and will continue to fail.
Behavior of costs due to higher production
It is proven – by empirical law of the economy and by development of the analysis – that the higher the production, the lower all the costs. Because it is not the same to produce a thousand cars, for example, than a million cars. Because fixed costs, installed capacity and inputs are used in a greater quantity of final goods produced. But to produce more, with that growing quantity, it is necessary to hire more and more workers, skilled and unskilled, and what always happens will happen: wages will rise as growth approaches the line of “full employment.”
As can be seen, the curves of both costs are inverse: if all costs fall due to increased installed capacity and productivity, they will increase at the same time, and simultaneously, employment and wages, beyond the supposed selfishness of some businessman; because if he does not pay more, he will not get employees, who will opt for another employer, which will achieve the fair distribution of income and the desired social equality.
How to achieve it?
This, which seems like a utopia, can be a reality. Due to the natural and special conditions of Argentina, which has so much and where so much remains to be done, without conflicts with the world and far from the war scenarios on Earth.
The first thing we must accept is that we should not depend on the “doing” of politicians, but on “letting people do it”. Because the sum of the talents and initiatives of the inhabitants of a country, no matter how humble they may be, will always be superior to the most brilliant and intelligent of bureaucrats.
For this, it is necessary to apply “an imbalance” to the productive sectors, lowering taxes, including those that tax consumption, not spending the State more, not indebting the country more or issuing currency to finance the deficit.
This will mean a complete reformulation of the State, both the national State and those of the provinces and municipalities, including the foreign service and public companies. What should the sectors and productive labor forces then ask of the government? The same thing that Diogenes asked of Alexander the Great, who happened to block the sun when he offered to give him whatever he asked for: Let it not shade him!
* Lawyer specialized in economics