And your assumption is that these adjustments will just spiral upward infinitely into a Zimbabwe inflation fantasy. But this is the same flawed argument we get from the right every single time we've had policies that improve the conditions or wages of laborers, and every single time they've been wrong. Prices and wages did find a balance each time.
No, actually, this isn't my assumption. I've argued there wouldn't be this massive price inflation and thus the employers would simply cease to exist. My argument is quite different.
Regarding the "found a balance," that's because the current transfers are small and coupled with a too-small minimum wage. Which is exactly what I'm arguing in favor of. As I keep saying, I'd increase both the transfers and the min wage; what I do not advocate is abolishing the minimum wage and giving everything into a transfer.
What
allows for this balance to exist is that a huge chunk of it is through forced wages and most if not all labor economists agree.
The current situation we are in is that for decades, wages have stagnated, benefits have been cut, worker productivity and hours have increased, consumer debt has skyrocketed, but with huge increases in profits and wealth for the owners of capital. The entire point of reform like this is to make sure that the lower classes actually benefit from our economy, and we clearly have more than enough wealth and productivity to make sure everyone gets what they need.
And for the last few decades our gov't has shifted policies to less forced wage increases and more direct transfers. Do you see the connection? The best way to make sure that most employers benefit is to force wages up through the minimum wage and supplement it with direct transfers, not to just make a direct transfer.
If you genuinely believe that there is not enough capacity in the economy to provide basic needs for everyone, that it will fail completely if everyone has a place to live, food to eat, health care, and education, then you shouldn't even be advocating for the solutions to wealth inequality you prefer, because the end result we both want will get the same market reaction either way. People who have what they need can't be exploited, and freeing them from that exploitation, no matter how it's done, will cause prices to rise, period.
For the 10000000th time, if you would fucking listen (because now you're irritating me), I have argued that the basic needs should be covered but I don't believe a direct transfer
alone would accomplish that goal remotely and that it needs to be done by gov't mandated wages supplemented by direct transfers to achieve this goal.
Here is what one of the most left-wing and respected economists you'd find, Brad De-Long, has said:
Now I like the EITC. Come the Day of Wrath, my best pleading will be the role I played in 1993 in the Clinton administration in expanding the EITC. But the EITC is a program that uses the IRS to write lots of relatively small checks to tens of millions of relatively poor people who satisfy picky eligibility rules. This is not the IRS's comparative advantage. The IRS's comparative advantage is using random terror to elicit voluntary compliance with the tax code on the part of relatively rich people. The EITC is a good program, but it a costly program to administer, and it is administered imperfectly to say the least.
The minimum wage, on the other hand, is nearly self-enforcing: its administrative costs are nearly nil, for workers (legal workers, at least) have a very strong incentive to drop a dime on bosses who violate it. From a government-administrative and error-rate perspective, it's a very cost-effective program.
The right solution, of course, is balance: use the minimum wage as one part of your program of boosting the incomes of the working poor, and use the EITC as the other part. try not to push either one to the point where its drawbacks (disemployment on the one hand, and administrative error on the other) grow large. Balance things at the margin.
Doing one or the other by themselves is almost-certainly bad policy. Which is why you combined them.
Here's one study that demosntrates a direct transfer alone combined to a combo with mini wage is inferior:
http://www.peri.umass.edu/fileadmin/pdf/published_study/PERI_MW_EITC_Oct2010.pdf
To be blunt, if a particular business or industry absolutely can't survive without our current wage serfdom, we don't need it. If the goods and services it provides are necessary for society to function, then they are clearly not something capitalist markets should be in charge of, and the government should be providing them, along with fair wages to the people they employ in doing so.
Or maybe the policy you advocate is inefficient to the ones most labor economists approve of? "I'm not wrong, it's capitalism's fault!"
If you want to help people, how you get to the end goal shouldn't matter. If a direct transfer to everyone would get us there, I'd support it. But the available research has showed that it most likely doesn't work and at the very least is inferior to combining it wit a minimum wage. I support the most efficient plan that gets people help. I don't care who came up with the plan, I don't care if it goes against my original preconceived notions. I want everyone to have a basic living covered as you do, but I'm, going to go with the plan does achieves this best,.