CDB
Registered User
Nullifidian said:This assumes 2 things that I can see, right off the bat:
1) That jobs at other companies are available to the worker
Yes it does assume that and rightfully so. There is no real world situation where one employer exists, minus government intervention in the granting of that priviledge. All current supposed examples of monopsony are areas with heavy government intervention or artifacts of the application of perfect competition theory (Block and Barnett, Austrian Critique of NeoClassical Monopsony Theory).
2) That the worker is informed abotu those jobs and what they pay
He doesn't need to be informed because the process doesn't happen in isolation.
That isn't always true. Additionally, in many countries that do not have anti-trust laws, companies get together and set flat wages to maximise all their profits. So they are all paying the same dirt wage that can't even feed a single human.
Companies don't, companies and the government do.
Then they go and hire anyone willing to work there. When these capitalists built their factories they usually build it over previous farmland or some other area that used to provide a natural source of food. So now the peoplee of the region are starving and whereas before they lived without need of money now they have to because the corps took their food away. So their only answer is to go work in the factories and die slowly from starvation.
If they owned the land then the corporations must have paid them what they thought was a fair price for it, at which point one has to ask what the problem is. If they didn't own the land they don't have a right to say how it is used. If they did own the land and didn't want to sell but the government forced the situation upon them, it is not the company that's to blame but the government.
Real world examples of these so called market failures where monopoly or monopsony exist are examples of socialism or mercantilism (or time limited examples of capitalism). I wouldn't defend either one of the first two systems. When the government gets involved and grants a monopoly, you are no longer dealing with capitalism. When the government gets involved and grants a monopsony, you are no longer dealing with capitalism. In both cases you're dealing with extreme government interventions in the market, both of which are in complete contradiction with free market capitalism. It makes no sense at the point to blame capitalism or the market for the distortions caused by the government intervention. That corporations like and take advantage of these interventions to line their own pockets is a reality. However without government enablement of one sort or another they couldn't do such things. Ergo the operative 'bad guy' is the government, not the market or the corporations.