I am getting the picture here. You make the mistake that many others make concerning properly functioning markets, like the labor market at the low end, or the health care market. There is one component that must be present for a market to function efficiently, and by that, I mean that the market price is a fair price. One that does not result in extortionary profits. In fact, this component is present in our judicial code, a requirement for a valid contract. It is called equal consideration. For low skilled workers equal consideration is not present. The reality is that the employee needs the job more than the company needs the employee. If anything, this federal unemployment benefited has at least leveled the playing field. In fact, the complaining is happening precisely because employers no longer have that advantage, now there is actually equal consideration, and the lack of employers being able to fill positions is a clear indication that current salaries being offered are inadequate.
Indulge me with a personal story. Many years ago I applied for a part-time position as a meat cutter at a local supermarket. My insurance business was pretty much on cruise control after twenty years, the kids were out of the house, my wife was working, and I have always missed the "block". Making some spending money while cutting meat sounded like a good idea, I didn't even expect to be paid much. Maybe 15 bucks an hour for twenty hours or so a week. A couple dinners out for the wife and I without touching the business income.
So I get there about half an hour early and looked over the meat case. It was a poor shape, and I laughed to myself thinking of the ass chewing I would have gotten if my meat case had looked that way back in the day. About five minutes before the scheduled time I reported to the customer service manager and she told me to have a seat and wait for the assistant manager. I had already spotted him, straightening up the candy racks on the front end. She told him I was there. They young, maybe 25 year old punk piddled around for another twenty minutes just to make me wait.
He questioned me about my qualifications, told me I would have to know how to cut all the cuts in the case because of the custom meat case. I assured him I was quite qualified and explained my background. Now this chain had already made the switch to case ready beef, cut off site, but they did do custom cuts in their butcher shop. Then he got around to pay. He said he could only give me about ten to fifteen hours a week, and the pay was just a bit above minimum wage. My response was, "You want a trained meat cutter but you don't want to pay for them". He said, oh we don't cut meat here. I was livid, I told him that he had already explained to me that I had to be able to cut all the cuts of meat. I was done, I mean at this rate my income would barely cover the tip for one dinner out, certainly not worth my time. I stood up, and he stood up to meet me and I climbed in his face, inches from the little shit's nose, and I told him, "I don't need this job, I have a successful business", and then I started rattling off all the problems in his meat case, from the out of dates to the dark turning meat and glaring holes. I told him good luck finding a real meat cutter.
I know he no longer works there. An old friend, former meat cutter, runs that department now. But he had to have a job because the company he worked for went out of business. You see the difference. I expected to be paid close to what I was worth, and I was quite capable of walking away. My friend was not so fortunate. Equal consideration. There are two solutions. Either implement a minimum guaranteed income, as some cities and counties throughout the country have done, or mandate a significantly higher minimum wage.
