This statement is equally true for any type of labor benefit for any other type of product. What does the businessman want to sell his goods at a certain price per unit? He cannot sell at the requested price, the term used in the jargon of American businessmen is not to move in the inventory at all (the rod does not move).
But he will have to move, because the businessman cannot save the goods, because he must buy something new; Fashion is changing.
Therefore, he will reduce the price if he does not want to go bankrupt, he has no choice.
You can incur losses, but these losses are due to the fact that it was incorrectly expecting the ability of the market to absorb its product.
The same is true in relation to young people who come to the city from rural areas daily with the intention of earn money in all industrialized countries.
In the United States, they come to the city with the idea that they will earn, say, $ 100 a week. This may be impossible. And if someone cannot get paid work for $ 100 a week, he will have to agree only by $ 98 per week or even less. But if someone stubbornly declares himself how trade unions do it - “one hundred dollars a week or nothing,” he may be forced to remain without work. Manuals paid by employees who pay special taxes for this purpose are sometimes almost as high as the salary that they would receive in the event of their employment.
There are people who believe that the full use of labor is unattainable in the absence of inflation, and inflation is accepted.
The question arises whether a healthy currency is preferred, accompanied by controlled unemployment between the natural limits *, or inflation, accompanied by the full use of labor?
The correct survey begins with the question: "How can one improve the situation of workers and other population groups?"
The answer is: guaranteeing a free, unhindered labor market and, thus, the achievement of a desire to fully use labor.
The dilemma is as follows: will the wages be determined by the market or will they be determined by pressure and violence by the trade union?
The dilemma is not whether to choose inflation or unemployment.
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