You expect me to buy some video on amazon that costs $35 dollars to explain to me why supply and demand do not effect the labor market? Why don't you explain it?
Okay. I will try one more time.
Sound money "
rings" when dropped on a hard surface. Sound money is not unlimited in supply because the limits are defined by how many resources can be mined, how much product can be grown, and how many goods can be manufactured. (i.e. the limit of how much can be mined, grown, or sewn at any given time). Sound money is representative of valuable products and services.
Sound monetary policy is based on valuable exchanges between traders. For example, if a doctor "sets" your broken bone, then you should "pay" the doctor something of value that he requests. It could be a piece of gold, a certificate for a weekend in Hawaii, or a week's worth of dining for two at a fine restaurant. Whatever the doc wants. If he charges too much, then his reputation for overcharging will alert him to that fact and he will bring his price back in line with the value of his service.
So, in a monetary system of sound money value is exchanged for value. The doctor should not be required by law to charge a minimum or maximum for his services. That transaction is between the customer and the provider. Minimum wage laws only distort value in the system of honest sound money.
---
The world's economic systems were based on sound money until the printing press came into being. Now, most of the world's economy is based on central bank's fiat money and however many zeros they decide to add to the balance sheet. Of course nobody knows what amount that is because our representatives refuse to audit the Fed, but nonetheless the rules change.
---
Fiat money is "created" out of thin air because laws and security teams force people to use their legal tender ... The Federal Reserve Act of 1913.
Side note: In fact money is not "elastic" and cannot be "created" out of nothing. That is a distortion of reality, and the money still comes from production indirectly ... but I digress. Unlimited amounts of fiat money can be printed or added to bank accounts by adding zeros to the end of the number.
If the
powers-that-be determine the world's money supply should be one $Quadrillion, then they must "indirectly control" how much the doctor charges for his services and they must direct employers the minimum amount to pay employees. They do in fact control the amount of money in the world by force of law and guns. Supply and demand forces are seriously distorted.
What happens if the
powers-that-be determine the money supply should grow from one $Quadrillion to one $Septillion? Well the doc should get a raise and so should the employees. The markets are controlled by policy. To be fair, the minimum wage should go from $7.00 per hour to $7,000,000,000,000.00 per hour to keep pace with inflation. Minimum wage laws, and price controls, become important and should be tied to inflation in a system of unlimited money supply.
Therefore, minimum wage laws should be enacted, as long as, smart Ivy League Anglo-American power-elite graduates control the money supply.
Applying sound money principles to an unsound system of fiat money doesn't work and visa versa.
