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Bill: Turgot Bill

Details

Submitted by[?]: Partie Traditionnelle de Monarchiste

Status[?]: defeated

Votes: This is an ordinary bill. It requires more yes votes than no votes. This bill will not pass any sooner than the deadline.

Voting deadline: March 2447

Description[?]:

For the strength and prosperity of the nation, we must provide freedom for our people to engage in commerce and all voluntary, mutually beneficial exchanges. Government involvement in the economy is a detriment to the welfare of the people and the nation as a whole. Only through liberty can the maximum wealth of the nation be achieved, and only through liberty can we have the most equitable distribution of this wealth among the deserving.

Proposals

Debate

These messages have been posted to debate on this bill:

Date16:08:37, August 22, 2007 CET
FromPragmatist Party
ToDebating the Turgot Bill
MessageWhile the Pragmatists would support Article 5, regarding advertising, and article 6, the removal of local governments' ability to create discriminatory hiring practices, we cannot support the rest of the bill. Regulation of essential services is all that prevents companies from extorting citizens in areas in which they have monopolies (which inevitably occurs if phone and power lines are privately owned). Regulation of the economy through a central bank allows us to avoid the periodic depressions other nations suffer. While we might support a reduction of the minimum wage to a more reasonable level, we will not support its elimination altogether.

Date20:09:29, August 22, 2007 CET
FromPartie Traditionnelle de Monarchiste
ToDebating the Turgot Bill
MessageThe Partie Traditionelle de Monarchiste understands the concerns of the Pragmatist Party, but believes them ill-founded. Telephone and energy industries are just as competitive as any other, it is only the government which can create monopoly. The monopoly privilege provided by government benefits the few at the expense of the masses. However, on both these counts, the PTM is willing to compromise on a half-way solution of voluntary use of either government or private energy/telephone services. That way, if the Pragmatist Party believes its fear of price gouging is justified, the citizens will have the option of using the government service which will be supposably less expensive. The Partie would like to note that currently the government holds a monopoly on the energy and telephone companies, and wonders what harm could be done in allowing competition.

As for the central bank - such an institution does the exact opposite of what the Pragmatist Party suggests. Fractional reserve banking (nothing more than fraud supported by the government) is what causes depressions and recessions. Free banking will stabilize our economy, prevent dangerous inflation, and stop the boom and bust cycle which plagues all economies that have central banks.

As for the minimum wage, that is not a floor under which wages cannot fall. It is a bar which people must jump over to be employed. Wages are determined by marginal revenue product, not employers' whims. If employers were the ultimate deciders of wages, would not everyone make the minimum wage? Why do brain surgeons not make the minimum wage? The reason is their marginal revenue product is higher than the minimum wage. If we assume a brain surgeon is worth $100 an hour to a hospital, what would that brain surgeon be paid? Well, obviously the hospital would like to pay the surgeon $1 an hour. But if they did so they would be making $99 an hour on the back of this worker. And that would make a competing hospital decide to offer the surgeon $2 an hour. The surgeon would obviously accept a pay increase, but the new hospital would now be making $98 an hour on this man. So another hospital would come along and offer $3 an hour, and so on until the marginal revenue product of the brain surgeon, minus the cost of finding him, was met. Now, a hospital wouldn't pay the brain surgeon $200 an hour, because then they would be losing money on the surgeon and eventually go broke. That is how competition ensures that workers are paid based on their contribution.

Now, let us examine what happens when there is a minimum wage. If a minimum wage is instituted, it doesn't say, "all your workers must be paid at least this much." It says, "It is illegal to hire workers for less than this much." So, what happens to the workers who have marginal revenue products less than the minimum wage? As shown in the doctor example, no employer is going to hire someone for a price they lose money on. So, the low-skilled worker becomes unemployed. The minimum wage hurts the lowest-skilled workers in our society. It hurts those it is meant to help. This cruel and terrible system must be gotten rid of.

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Voting

Vote Seats
yes
  

Total Seats: 53

no
     

Total Seats: 281

abstain
  

Total Seats: 91


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