Nov. 25th 2012
Topic: If laissez-faire can provide the greatest good to the greatest number of people, the working class will still be the victim of the competition of profit.
Laissez faire, which is an economic policy theory that the government should not interfere any decisions that made by business owner.
Ideally, this theory could provide an open, competitive market for the society, but as more and more business start to pursue profit and fortune with the lack of morality, the working class will probably suffer bad condition and low wage.
Profit, which equals the cost on a business minus by revenue, is one of the most important things to a business owner.
_________the business and products I talk here are all long-term.________
One of the simplest ways to get more profit is to decrease the cost on a product. First, and the simplest one is to decrease the money you pay for the workers, especially for companies have huge number of products and little profit on every single good.
(Actually, most companies are like this.)
Consider if every company is doing the same thing.
At first, because the less you pay to the workers, the lowest price of your products can be lower, the easier you can sell your goods, but as the money become less and less, workers cannot afford the products and the demand of your products starts to decrease which will cause the price keep reducing and the amount of good you sold also get lower and lower. As the result, you have to pay your workers even much lower to keep your cost less than your revenue. For workers, the wage getting lower also causes a lot of disaffection to the company. It will become a vicious circle and finally cause the...