Free Market Forever

May 3, 2006

How Better Laws Will Mainly Improve Workers Income Rather Than Capital Owners

Filed under: Proper Alignment — admin @ 4:30 am

Government’s regulation that hurt productivity as a whole, such as tolerance for anarchist movements will reduce workers income.

Currently, under globalization, many workers in some rich countries are having more salary than workers in poor countries.

If all else is equal and the only difference is salary, then capital owners will want to move all their factory and production to poor country. They will and only will do so when all else is equal.

The problem is poor country often has a lot of corruption, capital destruction, tax, and law uncertainty.

What will be good for workers in Indonesia is to demand governments to fix those problems.

The one that will be benefited will not be the capital owners, but workers.

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