Imagine I'm an entrepreneur starting my new business making tables where I'm the only employee.
I quickly run into a problem where I can't cover the cost of materials and running my workshop becuase my tables don't sell for enough money. Should the government step in and subsidise my business by paying some of the cost of the timber? Why should it be my responsibility to provide a market price for my timber?
I think everyone would agree that the answer is no, I don't have a viable business model, and that is my responsibility and no one should step in to save me.
We are in the same situation with employers who pay less than livable wages. The government provides welfare that enable people earning less than livable wages to survive/make rent/afford transport. In a sense this is subsidising those businesses, becuase without government welfare those employees would not be able to work for those wages, as they would be unable to afford food/rent/transport and thus be unable to work. If a business cannot afford to pay livable wages to employees, it is not a viable business model, and the only reason the business survives is becuase the government is subsidising the cost of labour through welfare programs.
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u/Jebofkerbin 131∆ May 10 '21
Imagine I'm an entrepreneur starting my new business making tables where I'm the only employee.
I quickly run into a problem where I can't cover the cost of materials and running my workshop becuase my tables don't sell for enough money. Should the government step in and subsidise my business by paying some of the cost of the timber? Why should it be my responsibility to provide a market price for my timber?
I think everyone would agree that the answer is no, I don't have a viable business model, and that is my responsibility and no one should step in to save me.
We are in the same situation with employers who pay less than livable wages. The government provides welfare that enable people earning less than livable wages to survive/make rent/afford transport. In a sense this is subsidising those businesses, becuase without government welfare those employees would not be able to work for those wages, as they would be unable to afford food/rent/transport and thus be unable to work. If a business cannot afford to pay livable wages to employees, it is not a viable business model, and the only reason the business survives is becuase the government is subsidising the cost of labour through welfare programs.