Unions and trade organizations are well and good, but when the .gov gets involved via licensure regulation it drives the cost of services well above their market value.
I think about this every time I need to go to an office and get a permission slip from an MD so that I can drive across town and give that permission slip to a pharmacist in order to purchase my blood pressure medication.
Licensing is a separate thing/problem from wage setting though, isn't it? And licensing came about because some people were selling placebos and calling them blood pressure medication... You can still see this practice in the herbal remedy sector and weight loss sector - selling "medicines" that don't work is big business. The pressure to licence only comes if people start dying, as they do when serious medicine goes wrong (but not weight loss or herbal stuff).
Getting back to wage setting - I was just trying to point out to people that when they are asking for no interference from government, that should apply across the board.
But a lot of the people clamoring for non-interference also pressured the govt to interfere in the wage-bargaining process and ban things like sympathy strikes, wild-cat strikes and other practices that would go on in a purely free-for-all world.
That interference has had consequences - including soaring bills for the taxpayer.
Business tends to want employees to have as few rights as they do in China, but at the same time to have the purchasing power of free people in the west, in order to buy their products, and they want the tax rates of a small city state like Monaco which has no great infrastructure requirements.
That circle can't be squared. I'm amazed people even think it can.
If they all don't pay their employees well, they won't have purchasing power to buy goods - unless they a) borrow or b) the govt steps in with a tax credit subsidy.
If the low paid borrow and can't repay, the banks then need a bailout from the taxpayer. The tax credits also come from the taxpayer. Who is the taxpayer? The same households/individuals who are being paid so little - it's not the corporations, who employ elaborate tax avoidance schemes. And because they are being paid so little they arn't generating much tax to support all of this. So the govt itself has to borrow to make up the shortfall. Then the govt in desperation at the soaring bill for all of this legislates a minimum wage to fix it all. But if they hadn't interfered in the wage-bargaining process in the first place it would probably still be like the 1950's.