Sunday, February 24, 2008

" wages legislation", I do not value

Oil price has risen , meat price has risen , angry price has risen , building price has risen , , , what rises , only only wages do not see rise. Say truth , see this conclusion, except boss, if rely on wages life, I think that nobody is not gloomy , also include me certainly. It may be gloomy to go back to gloom , says practically for this prescription " Guangdong will adopt 'Gong Zi Li Fa' to force enterprise rise wages" that I do not value.

Apply mechanically the words of a sentence coarse point: God's goes back to God, Kai scatter is Kai scatter , I believe " economy go back to economy, politics go back to politics ". Say specifically , is that economic problem had better solve with economic means , solve if insisting to use administrative means, that certain is south Yuan north wheel track, contribute do not flatter. Time does not be not only flattered , will be ruined on the contrary.

Free economist always advocates government to do not want , interfere the matter in economic field at will, and not advocate government to have no is, in fact, it is to hope that government follows economic law to handle affairs. Though, administrative means and legal policy have force , but are not that all force is effective , can produce positive effect. In this respect, in human history, there are many grievous lessons. Try to lift 1 or 2.

After the United Nations prohibits through whole world to use the pact of child labor , the South Asian countries such as India and Bangladesh comply with this pact strictly , punish sternly the individual and unit that emploies child labor , so have gotten the favorable comment of common people. But after a time investigation on-the-spot, economist has reached following investigation report: Since having lost work, so, have lost meager income, South Asian child labor plenty of famish or fall onto young prostitute. From this sensational conclusion, is easy to see after all which kind of economic policy is more humane for child labor.

There is still a example: On world through prohibiting to hunt , kill elephant and ivory trade afterwards, East Africa and some countries of Central Africa prohibit to poach elephant sternly , carry out strict protection for elephant, it is still rampant to poach , can not prohibit that elephant is more and more few. And do not prohibit to catch 4 hunting South African countries, elephant quantity has increased well few times on the contrary. Via careful research, economist has given to arise the reason of this kind of abnormal phenomenon: Because of South African national citizen, may profit from ivory trade, they have aroused great initiative on the contrary to protect elephant , try everything to promote elephant to breed.

Two above-mentioned examples have proved administrative ineffectiveness phenomenon strongly. Let us see " wages legislation" again this administrative means, can you be the same to do not work? We know that is not only, but for the system of planned economy and the wages levels of a country and a region that person can decide which one , it has huge quantity , the owner and labour that does not be acquainted mutual endure in the market many bouts rich Yi form. Namely, wages horizontal generation has self inner mechanism.

, if any cross-eye of one side goes off work capital horizontal dissatisfaction, two sides at any time may again rich Yi. Labour thinks that income does not compensate for to pay out , may select person with foot ballot , takes in better place. Owner must raise wages level to reserve worker, though he does not be willing very much. If owner thinks that the wages that labour puts forward have too high requirement , and can not be borne , he may also quit , reserves resource to the factory with higher efficiency. - - but for that dark brick kiln of Shanxi, labour has lost completely rich Yi ability, fall onto owner slave, administrative power need not be intervened.

If power insists to have the more Zu Dai Pao, substitute worker asks owner to mention wages forced, aftermath will be very far from good. Why? Cover grows leg because of capital, it can go. If administrative power causes enterprise cost to increase , it is profitless, it will run away , goes to the region and country that manpower cost lows more. Is natural, if government not let go , its destiny is to close down surely. No matter closing , or runing away , what lose job is worker. Wages are low, even having wages, may lose job , have also sunk for some wages. What difference has this and South Asian destiny of child labor?

So, I do not value " wages legislation". In fact, on wages problem, government has action if insisting to have , as some commentators point out so: Only desirable road derates the tax of - - individual the negative tax of enterprise undertakes. " wages legislation" is to kill chicken to take egg , tax reduction is to turn on the water to raise "chicken". Chicken raises fertilizer , just has more egg to send wages , has at the same time increased tax source.

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