Edgar the Exploiter

Edgar the Exploiter is an explanation of how the minimum wage can be expected to harm marginal workers (even while it might help others).

'Edgar The Entrepreneur' by Daniel Sanchez

Translation Credits:

Hebrew
גיא קדם‎

German: Manuel Barkhau
Portuguese (Portugal): José Manuel Moreira Batista
Slovak: bulakmartin
French: Edouard H.
Spanish: Adam D
Indonesian: Entree 4 class MBA SBM ITB jakarta

[bitbutter]

"I'd love to know what country Edgar lives in where they triple the minimum wage in one go."

This did not happened in the film.

The exact numbers are not important to the analysis. The film illustrates how the introduction, or any raise of MW level, is likely to harm the most vulnerable workers.

Excellent video. For those worried about big corporations notice that MW and general intervention in labor market also benefit most of them as it makes competition from small businesses harder.

Well funded big corporations are happy to employ workers at an initial loss (these workers will eventually provide benefit, with training and experience) in exchange of destroying competition from new and small innovative companies.

[bitbutter]

@Griz zuli

"in countries that have minimum wage, workers are better off."

Correlation does not equal causation. In countries in which wages are higher, implementing a MW of a given level will harm fewer people and its effect on unemployment will be lower. We know MW harms marginal workers for the reasons spelled out in the video.

[formerevolutionist]

I just finished reading "The Law" by Frederic Bastiat. Even though it was written hundreds of years ago it accurately describes socialists today.

[smithy]

This reminds me of when I was a child and homeless. I was eager to work and happy to do so and try build myself a life, but many people tried to stop me from working by saying I was too young and many other nonsense things that had nothing to do with them. They went as far as publicly criticizing my customers and trying to shame them for hiring me. Those people are evil and they survive by suppressing us and using their system to steal the fruits of our labor to nourish themselves. They were the reason for my parents losing the family home, now I am older and a bit wiser, I have had the same thing happen to myself that caused my parents financial strife. They systematically rob us and shut down our businesses to stop us from being a threat to their monopolies.

[bitbutter]

"mechanisation (which hasn't already happened despite being more profitable long-term because ???)."

Because firms have only so much resources at any time that they can invest in long-term efficiency gains. A 1960s grocer would probably be unwise to invest in a computer, for example.

[bitbutter]

"The millions of employees out there"
The 'army of unemployed' exists in large part thanks to laws like the minimum wage which price workers out of the labour market--for reasons explained in the video.

"What I'm saying is that there would be the same rate of unemployment"
There is no reason to suppose that this claim is correct.

[bitbutter]

They're the only two in this series so far. You'll find other videos talking about similar themes on my channel. I'm working on the third in the 'George' series at the moment, you can keep track of its progress by 'liking' the George Ought to Help facebook page (link in the info box).

[bitbutter]

"homesteading implictly requires that the land in question produces a return without the need to employ others."
No it doesn't.

[bitbutter]

"It implies that there is upward mobility in Simon's position."
There might well be. Work experience of any kind is valuable for those who have not been employed before.

"If Simon is unable to earn a living wage"
Simon can clearly live off the wage(s) he earns combined with whatever other help (if any) he's receiving.

[bitbutter]

The comments section is moderated. Civil dissent is very welcome.

Posters of antagonistic comments may be blocked from the channel. The use of invective or name-calling is very likely to get you banned. Please consider whether there's a more constructive way of conveying your message before clicking 'Comment'.

Thanks!

[bitbutter]

None. This is an independently crowd-funded production.

Do you understand why we can expect MW to harm the most marginal workers?

[bitbutter]

Do you understand how minimum wage harms the most vulnerable marginal workers? If not, watch the video before replying, it's explained in detail there. If anything isn't making sense to you feel free to ask questions.

[bitbutter]

"a janitor with 10 years experience will still be a janitor whether he stays or moves to another company."

Showing up to work, demonstrating social skills, showing a certain level of conscientiousness and trustworthiness. These are all things that holding down even the simplest job demonstrates that a person is capable of. Even a janitor can incrementally better his employed position, and the work experience of his or her first job will help them in doing so. What's to disagree with here?

[Carlos-uxgv]

Simon's bicycle seat is adjusted too low.

[bitbutter]

"I take issue with the way the video cleanly quantifies labor."

You mean how Edgar is able to know in advance what the precise expected MRP of each employee is? Of course that's different in real life (employees have a much more vague idea of expected MRP), but the principle remains exactly the same: an employee will not hire anyone for a wage that is greater than the revenue they expect that person to generate for them.

[samuelgates]

At 0:42 Simon lays down the harshest whip of 2015

[bitbutter]

This is the simplest way I can put it: The 'exploiter' is helping the desperate poor person by offering them a job in a sweat shop (assuming he accepts the offer). If you complain about this 'exploitation' the complaint must be that the exploiter isn't helping the poor person enough. But he's already helping this person more than you are (very probably).

So unless you're going to reserve more severe blame for yourself than for the exploiter, your position is incoherent.

[bitbutter]

The film limits itself only to explaining how MW can be expected to harm marginal workers (it doesn't even make the claim that MW is bad, although that is my opinion). If you believe any part of the reasoning in the film is unsound let me know. Or if you have trouble understanding anything in the film let me know.

[DrEnginerd]

If i had 100k$ i would give it to you if it meant a lot more videos like this. This is exactly what people need to understand liberty, keep up the good work