There are better ways such as variable work weeks and gig/day labor for easily acquired menial labor (on top of UBI), but that may be a bigger shift in culture than UBI.
That being said: Unloading trucks is a solved problem that can be automated with sufficient containerization.
Go read https://www.reddit.com/r/Fedexers and let me know how solved that problem is.
I think it's mostly the mix of overworked + low benefits + knowing that you have to do it otherwise you'll have nothing is the deal breaker - not so much the job itself.
A lot of people, myself included, would still work if they receive UBI. We'd just work less, plus it would be liberating and healthy for the mind to know that you can quit anytime without your survival being at stake.
Nobody is claiming that the entire humanity will stop working under an UBI system.
Is your current job cleaning gas station toilets at 5am?
Because if not, you haven't responded to the posts you're replying to.
People will definite do something for sure. It's just I'm not sure why something has to be some sort of job or anything beneficial to society. There are a lot of people whose jobs are damaging to society actually.
It's just that I'm fairly sure there will always be people willing to clean toilets for little extra money, especially if they're not abused and kept hostage of a minimum (but lifesaving for them) pay. And those conditions should be impossible in an UBI system.
That's assuming UBI would actually cover the basics. If that's half the needs to sustain their life I agree they would do that cleaning job, which is getting back to the original situation: job filled only because of lack of choice.
I'm not saying it's going to be the same group of people who will re-pick cleaning jobs.
There's plenty of people out there who need the occasional physical thankless labor (myself included). As long as it's no more than 3-4h shift IMO there will be people who will do it.
In my eyes the key element is having the choice of not doing it. UBI might give us that or it might be a half-arsed measure that only does things on paper. We have no way of knowing that right now though.
While I’m using hyperbole, what it shows is that, there is some non-exploitative wage for cleaning bathrooms and while it might be “too high” for the current business that need clean bathrooms, supply and demand “should” figure out the rest.
The problem is that the market is being distorted. It used to be that Alice would pay Bob $2000 per month to clean all of the bathrooms in her office. Now, Bob quit his job to live off of $2000 per month of UBI, and Alice's taxes got raised by $2000 per month to help pay for everyone's UBI.
Surely this isn't fair for Alice?
Information disimetry is what Alice benefited from, she has better skills, knowledge, or connections, or all of these. Bob has less and cleans other people's bathrooms instead of getting his cleaned while he can grow his wealth undisturbed by chores. The disymetry then keeps growing.
I doubt the solution is to provide money as if it grew on trees to those who are below average in term of status and profit abilities in society. It would likely drag most people further down and keep a few at the top who will find ways to fund the mandiants somehow.
One just gets used to it and it isn't a big deal.
But for now we can only speculate. I'm still super curious how will the whole thing turn out though!
That kind of thing is best kept for where markets don’t accurately price externalities, not ”$foo businesses can’t find staff at a price they are happy with”.
[0] mostly
There is a gas station attendant working at 4am because they only cost $8/h and the company makes enough revenue during that hour that that is worth it.
If they need to start paying $15h/h and have to close from 1am to 5am, some people might not be able to get cigarettes from the gas station, or buy gas without a credit card.
Or maybe, out of 5 gas stations, 1 will remain open and now have 5 times as many customers during those hours, so it's worth it to stay open again.
But right now, 4 out of 5 gas stations are open simply because they can be, no matter how useful they are.
You're arguing for the destruction of economic activity in the name of reducing the 'wasteful use of resources', which is just silly. You're just making it harder for these folks to support themselves, while burdening others with the need to support them.
This assumes the worker isn't doing something valuable during the day. I worked some night shifts to pay for college.
> day time, for 8 dollars per hour or more,
I got paid more for the night shift than the workers on the day shift. Fewer people wanted to be awake at 3:30AM. Even fewer wanted to work.
Well yes, people need to sleep. You can sleep during the day, or at night, but you still need to sleep at some point.
If a student is burning their energy working overnight, they aren't getting the most out of college, that's a waste of resources in a given system.
Being debt free after leaving college was worth the lost sleep.
Reality of course is that you can't optimize a global society of 7 billion individual thinking people with different abilities, wants, hopes, needs, indeed you can't even come up with a measure of what you are trying to optimize, but in my view mankind should have eliminating non-producive work as a goal.
I've just filled in forms to register at the local GP surgery. I had to fill them in on paper, putting name and address multiple times on different forms, this will all be transcribed by one of the receptionists into a computer.
This is waste. My health care system is fairly good with eliminating waste (compared with say the US system), but it's something that should be optimised -- it would have been more efficient for both me and the data entry person if I could have just typed in the data into an online form (complete with autofill), rather than this archaic method from the 1980s.
Having inefficient systems is bad. On the London Underground 20 years ago you had to queue up at a ticket office or machine to buy a ticket. Now you just walk through the barrier with your phone. 100 years ago you would tell someone behind a counter what you wanted and wait around while he went and got it, 50 years ago you walked through the shop and did that yourself, and now with some stores you scan simply pick up what you want and walk out without even paying. The total work done reduces each time, and that's a net win for the species.
Reducing tedious unfulfilling work should be the goal, and a higher minimum wage incentivises that.
Here in Switzerland, it still seems to be a 50/50 if you get to fill out a form, or simply hand the receptionist your insurance card which has your national insurance ID on a Magstripe. Usually, all they ask then is "Is your address at Example St still current?"
I only have my life that I can optimize. The rest of humanity is above my paygrade.
I'm writing this from Switzerland, which has this weird relationship of being quite like the US, but also quite unlike the US.
In this case, opening hours of everything are strictly regulated. Only some shops in (or next to) train stations and airports are allowed to remain open on Sundays and holidays, on a case-by-case basis.
But because there's also legislation requiring large hourly salary multipliers for employees working on those days, their products can also be expensive as balls.
(Seeing as these are also the shops tourists see most often, this is where the "$4 for a can of coke???" encounters originate)
Specially when the 4 couldn't properly pay their living costs. Issue really is that we can't find different work for the 3 anymore...
Why assume that the worker is four times as productive? Even if the same number of transactions occur because everyone goes to the one open shop, we've still destroyed 64K of GDP by canning four employees.
> Specially when the 4 couldn't properly pay their living costs.
The 4 people working for $8/hour were contributing 64K per year to paying their living costs. By destroying their jobs have you made them better able to properly pay their living costs? Of course not, you've merely transferred the cost of supporting them to some other poor schmuck.
Reducing economic activity and raising taxes is not a recipe for increased prosperity.
You mean they might not be able to buy gas at all. Gas stations will shut off their pumps when they close, so you can't even do self-service credit-card purchases.
Some do, some don't.
Many gas stations around here (CA) keep the pumps working for self-pay when they are closed.
Also I remember driving on US50 through Nevada late after midnight running out of gas and stopped at a completely dark gas station. Fortunately the pumps worked!
[0] https://www.avenergy.ch/images/pdf/TAB-16_2016_final_D_korri...
In the US/Canada when I've filled up, at some places you turn up and someone does it for you, which is a right pain and breaks your train of thought as you have to engage in conversation with someone. Others you do it yourself, but you turn up and find the pump isn't open -- you have to go into the shop and pay in advance, which is just weird - I don't know how much I want to put it, I just want to top it up and then pay the amount on my credit card.
I believe laws vary by state or even smaller regions.
Switching to credit card kiosks won't help. It's usually illegal to have a gas station operating without an attendant. Something to do with that whole danger of blowing up and killing lots of people thing.
> maybe, out of 5 gas stations, 1 will remain open and now have 5 times as many customers
Except it costs some money to open and close the store, costs some money to have alarms & surveillance while the store is closed, costs the store in damages, and more than that, costs customers who will prefer the store that will always be open, even during normal hours. It may not all be as wasteful as you think.
And what happens when the store that can justify staying open happens to be the one that doesn't provide diesel, propane, milk, or similar? It can be very detrimental to the city.
Not in most of the US States I've visited. There are all-night gas stations across the nation that are unmanned.
> Except it costs some money to open and close the store, costs some money to have alarms & surveillance while the store is closed
I think you misunderstand. He's proposing that the competition of the 2-4 gas station clusters at most highway offramps/some intersections are over-competing. The permanent closing of some is a net good for the economy.
Multi-trillion dollar companies will eventually note how they are taking increased losses/less profit when faced with the current economics (wage floors, limited spending power of the middle class, etc).
Is this true? Probably not because the owners are largely franchisees who will not simply sacrifice their entire livelihood because profits are down. It's not like the owner of a Mobil station can set their own gas prices (near total control of these locations is baked into the franchise agreement, like with many large brands). The multi-billionaire brands aren't sweating a dime off their own fees when some location can't survive and closes down.
If the labor cost of the graveyard shift doubled the total cost of operations for that shift would increase only marginally. That gas station is only going to shut down for that shift if there's a significant change in costs. A small increase is completely covered by a single late night or early morning fill-up.
Usually, because fewer people are willing to work late nights, pay is usually higher for the night shift. This is often called a "shift differential".
> But right now, 4 out of 5 gas stations are open simply because they can be, no matter how useful they are.
If there was no economic advantage to being open, the store would be closed.
For the record, not a UBI proponent, nor do I think this is a good solution. It is however most likely solution, and how countries like Qatar have solved the problem.
As others have pointed out already, this is already true today: We use undocumented-workers, recent immigrants who don’t know better, and prison labor.
Recently, prison labor use has been on the rise.
Maybe losing UBI for N months could be a new standard punishment for certain crimes or a condition for parole. We'll let you out of prison early for good behavior, but no UBI for 2 years, forcing you to take those jobs no one else wants.
For example, I feel that certain high financial crimes are better served by percentage of net-worth, rather than exact dollar-figures.
Otherwise it’s a fixed cost of doing business.
So many of the comments in this thread are so absolutely horrifying to me. Bunch of spoiled people thinking there isn’t a space for entry level jobs, like they’ve never held one themselves.
That being said, would I have jumped on the unemployment train back then if it got bumped up due to a pandemic? Definitely. Do I think people should advocate for living wages? Absolutely. Twenty years ago when I had my last entry level job, cost of living was half what it is now, but pay has only gone up by 50%. There are real issues, but they aren’t due to jobs being “demeaning”, they are with wages not keeping up with inflation.
Your hustle-culture narrative is appallingly toxic and your entire argument amounts to learning to love being treated like garbage so that you don't feel bad when you do it to others once you're the one on top.
Seriously, do you expect six weeks of paid vacation and 30 bucks an hour for running a till at an ice cream shop? I can see maybe 18 an hour at an ice cream shop, but even at that price I’d be shocked if you don’t lose business due to a cone costing 5 bucks instead of 4.
Maybe this conversation would be helped by understanding what you define “exploited” and “treated like garbage” to be, and some examples of how that is happening. I feel we must be talking past eachother, because it’s hard to understand how there’s a valid argument for non skilled labor to command a high salary.
Again for reference I believe that wages haven’t kept up with inflation and that a minimum wage of around 18 or so an hour would be appropriate given the cost of living increases we’ve seen in the last 12 months.
Right now a lot of the costs of such jobs are simply externalized to exploited employees - a UBI would cause the wages in those to rise to more fair levels.
And playing the mating game is a lot easier if you have the appropriate status symbols, fancy clothes, et cetera.
But I have experienced effects of the labor shortage firsthand, e.g., getting somewhere only to see a "closed today due to lack of staffing" sign on the door.
And that in turn will spur development of automation instead of Bezos like corner cutting across our entire society.
Now if those low wage to minimum wage gigs came with solid health insurance and a social safety net I might have a colder heart here but honestly I'm glad they're finally figuring out just how rigged the game has been against them all along.
To be fair, by worshiping the affluent and hoping that one day they will be among them when they almost certainly will never be, they played their part in enabling the system that holds them down, but it seems we're moving to the next chapter here at last.
When everything is locked down, what's the point of looking nice in fancy clothes that nobody can see you wear?
The people that need them done would offer sufficient pay to induce people to do them [0]. If the need isn’t sufficient to offer enough to do that in the presence of a sustainable (non-hyperinflationary) UBI, then the job doesn't need done and the fact that it is happening now is just a demonstration of the exploitative nature of the current economy (which includes features like time limits and behavior testing that mean that not everyone means-qualified gets means-tested support.)
[0] which UBI makes easier, at the same maximum benefit level, than traditional means-tested welfare, by not cutting benefits rapidly with outside income.
On a more meta note, this is an incredibly common and obvious answer to your question, and I wonder if it's even asked in good faith. If you've "yet to hear an UBI proponent explain" this to you then you really don't understand it at all.
Except their goods are going to cost more too now. Unless you're going to start proposing price controls.
I can't really see UBI doing anything except inflating itself away.
And even if the benefits are entirely "inflated away" in aggregate (which is extremely dubious given that UBI produces real economic value in terms of stability), that's just the aggregate effect. To take an extreme example, if the Fed prints 1,000,000 exadollars and distributes them equally, then yeah it's pure inflation, but it also massively redistributes wealth to the point where everyone is practically identical. Hopefully that example demonstrates that the effect isn't zero even if it's just "inflating itself away."
Finally, I object to treating this question in pure economic terms. We shouldn't be overly concerned with optimizing aggregate economic outcomes for society. Those at the top end can more than afford to give up some wealth, and those at the bottom are struggling to a heartbreaking degree. The utility function of holding wealth is not linear and if you're interested in increasing everyone's well-being then that's a fact you have to address.
That is because if you print exadollars then either the assets rise in value in proportion or beyond a certain point, implode, making the country as a whole poorer. That is because companies can no longer make money. Suppliers demand more anticipating further inflation. You then need to pass it on but may not be able to pass it on fast enough. Cycle builds upon itself.
Pretty soon, your currency is completely devalued and there is a robust underground economy. You run into shortages for essentials and have to introduce price controls. The poor get poorer. The rich get poorer. Good job.
Lebanon. Venezuela.
2. The wage of the burger flipper at mcdonalds might not contribute much to the overall price of a big mac, but the wage of the burger flipper plus the wage that was factored into the cost of the ingredients might.
Companies in America are incredibly top-heavy, and a more stable economy could emerge if those resources at the top are distributed down to the worker. If implemented properly, UBI could push companies to share more of those profits with their workers without affecting the buyer.
Additionally capital generates more social value when it circulates (when its being spent) vs when it is stagnant (when it sits in a bank). Even if things are more expensive, more people having access to things allows local economies to grow
This is totally backwards. Better-off people have more disposable income and are less sensitive to price increases than lower-class workers are. For example, suppose your favorite restaurant raises its prices from $10 to $15 per meal. If you're a tech worker, you probably won't care and will continue eating there as often as ever. If you're an unskilled worker, there's a good chance you'll never go there anymore.
I don't know if you've ever worked with people in low socioeconomic strata, but I've been a camp counselor with some kids who's socioeconomics were such that eating off the dollar menu at McDonalds on their birthday was a big deal. I don't think Chipotle being more expansive is a material concern so long as actual purchasing power goes up.
I tend to think the minimum wage should be regarded as a moral concern - if you can't make enough to live decently then the line between effective indentured servitude and freedom is eroded, and this is dangerous in a society premised on the general welfare being such that each citizen has enough leisure time to be educated and vote.
But if you're trying to generalize the idea that increasing minimum wage would lead to an inflation death spiral because labor is too high a percentage of cost of staple goods... I'm not sure I buy it, though agriculture is definitely one of the industries most impacted by low cost labor (I don't know what they pay the folks crossing the border at 3 AM to pick lettuce in Yuma in 100+ degree heat, but it's not a lot). But my general sense is that the labor to harvest isn't most of the component cost of lettuce, there's transport, refrigeration, irrigation, pesticides, etc., so you can probably assume doubling minimum wage doesn't do anything like double the price of lettuce. If you believe that the labor to pick lettuce is 50% of the cost of lettuce, your worst case for a 2x wage increase is a 1.5x gain in the price of lettuce, which means the low end of the economy is getting net purchasing power growth, but more realistically, I can't imagine that picking lettuce is 50% of the cost, meaning low-end labor wage increases can't have near that much impact on prices.
My assumption is that the issue with higher labor costs is foreign competition at lower cost with lower standards causing a competitive issue and net less business more than it's an "wages increasing the price and causing an inflation issue." (IE the general "US must have 3rd world wages because otherwise it can't compete with the 3rd world" idea.)
But in my view so long as the increase in minimum wage creates an increase in overall purchasing power greater than any follow-on cost of inflation, it's probably net positive, and should be more efficient because the more normalized wages and living conditions are circa median income, the greater benefit to economies of scale and services and such for that group. Having too many poor and too many distinct socioeconomic bands is bad for the market because it means that the next model-T type product will be more likely to fail. So dealing with the issue caused by competing with lower-wage producers outside our boarders should be addressed separately. (For example, subsidizing US labor's wages by how deficient the living standards of competing labor is, or some other, smarter, plan, someone smarter than me comes up with.)
For that to be true, the price increase of goods purchased by the poor induced by the additional income would have to be a greater multiple than the additional income of the poor; this doesn't make any kind of sense.
If they are truly happy with the basics, then they would be happy with working 16 hours a week on two days. The truth is that the earning opportunity that allows this, forces them to live in an expensive location that then burdens them with another 24 hours of pointless busy work.
If I work hard and then win the lottery playing $2 tickets (so it already doesn't matter how hard I work), I can already not-work for the rest of my life. So the question isn't if this is possible, it's how many people can be supported at a 'basics' level with current technology.
Because there's a bunch of jobs important to society that won't get done. To be clear, it's okay that some people decide not to work. The problem is that currently, too many people are deciding not to work. If we eventually automate a bunch of low-skill jobs away, then I'd agree that it wouldn't be a problem anymore.
Fact is we have already automated away most trivial work, the remaining low skill labor is mostly there for the convenience of those with money. Society wont collapse if they aren't done.
Also, I think "reduced your choice of restaurants to go to" really undersells how bad that is. It's a bunch of small business owners losing everything they've ever worked for.
If something needs to be done and no one does it, then
1. Does it ACTUALLY need to be done? 2. The society starts just start splitting the work and doing it together.
This is strength of mini-governance. You're doing it because you care about the community and EVERYONE is responsible for it. Not a class system.
Well at least in the US we have unemployment benefits when you’re fired without cause. But yes, being late a few times is cause to be fired, and rightly so.
I think perhaps the real issue is that people’s perceptions have changed, and I don’t think for the better.
If you’re an unskilled laborer, then for the moment, your value to society is doing unskilled jobs.
Now a whole host of reasons cause people to be unskilled. From their current socioeconomic status, to mental health reasons etc, to just honest poor life choices, like not valuing education.
But there’s no free lunch in society, and ultimately that’s the current disconnect. Those that can only get unskilled jobs have now gotten benefits extended and are enjoying not doing “demeaning jobs”. And yet how do they enjoy that? Without society safety nets people would then need to do the demeaning jobs of supplying their own food and water. Hunting or foraging for food in 100 degree weather for 0 dollars, dealing with injuries on their own.
So these same people complaining are also willing to take for granted the strawberries and meat at the grocery that another person worked hard for to provide. They take for granted the shelter that was built and maintained over there head, but they don’t see that they should provide equal work back to society for that enjoyment.
Now there’s obviously a lot of real issues with labor fairness, minimum wage needs to be increased across the board, companies need to be held accountable for pushing a gig economy that strips employees of benefits etc. But the progress in labor fairness in the US, 8 hour work days, minimum wage, workplace safety, has been fought for in literal blood.
Now we have a generation of people who take all that for granted, and that’s a problem.
Edit: I also add this. These same people who say others haven’t worked such jobs, have not themselves lived in a society that is truly difficult. Many people have lived through or had family live through conditions that would make these people cry. Ask a migrant. Ask people who have had to flee countries and could barely subsist.
Those people are the ones thankful to have a “demeaning job” because in reality, difficult does not mean demeaning.
It’s entitlement, very pure and simple. And it won’t serve this generation well.
Prove me wrong with reasoned responses and discussion rather than downvotes.
I'd much rather develop software than scrub toilets, and yet the former is highly compensated while the latter is not. This is highly convenient if you're a software developer or (other) vectoralist, but is ultimately unsustainable for having a distributed economy. People deciding to not show up to do physical tasks for peanuts (while being told to ignore the pandemic) is the correction from the decades long trend of their work being devalued.
Although really I think this whole "labor shortage" thing is overblown. What really happened is a reorganization. Most jobs of last resort laid everyone off, and those people found new uses for their time - taking care of their own children, working for better-paying delivery companies, gig work where they didn't have to come into contact with screaming randos, etc. Now the jobs of last resort feel entitled to magically conjure "their" workers back, and are finding that they've gone elsewhere.
Scrubbing toilets pays less because fewer people can write software. Any human being can scrub a toilet. That’s what unskilled labor means.
I have done menial jobs and taken pride in every one. The vast majority of your “managerial class” have done the same.
The difference is they never stopped applying themselves and worked tooth and nail to get where they are.
The idea of some huge protected aristocracy in the US is a convenient myth. It makes up less than 1%. The rest of us work and worked our asses off.
So please stop covering laziness with moralizing. The rest of us are working and tired of the entitlement from the parasites.
Edit:
One only needs to look at your words. “Puppet masters”, “preisthood”, “debt based economy”, etc.
None of it jibes with reality. I suggest perhaps examining what psychologist would call your external locus of control, it won’t serve you well in life. Taking a class in economics and reading up on labor history on the US would also be helpful.
What is your second sentence here, apart from pure moralizing?
> Scrubbing toilets pays less because fewer people can write software
Sure, this is the obvious dogma so I didn't repeat it. But it only applies within certain assumptions - namely that unskilled labor can be arbitraged across borders, and that the people who aren't capable of writing software still need to bid against those who can to make a comparable amount of income to pay as rent. As I said, the contextless narrative is quite convenient if you're not subject to the pointy end of the market mechanism. But when we're critiquing the system, we need to examine its assumptions.
> The idea of some huge protected aristocracy in the US is a convenient myth
I never said there was one. By my analysis, our oppression is quite democratic - hence the lower-middle class goal of buying into real estate / stonks / etc and thereby becoming beneficiaries of the problem. While this is a common path to success under the current system, that doesn't mean that it is possible for everyone to actually take it.
In a debt-based economy, economic positioning is intrinsically zero-sum - by succeeding in moving up the ladder, others must be stuck below you. And the economic priesthood has driven us more and more into debt because it puts the economy under centralized direction. I'd wager this is the true source of your discontent, yet rather than looking at the puppetmasters pulling the abstract strings that define the large-scale trends, you're doing the easy thing of blaming those closest to your position.
Since we're responding in edits:
> One only needs to look at your words. “Puppet masters”, “preisthood”, “debt based economy”, etc. None of it jibes with reality.
Puppet masters is hyperbolic, but priesthood is simply a call back to an older term for the same role - setting and promulgating societal policy while pretending to be neutral. And "debt based economy" is straightforwardly factual - add up your monthly budget and look at the proportion that goes to your actual survival (food, utilities, maintenance, depreciation), versus how much goes to servicing debt streams (mortgage and property taxes). We're a debt based society - the poorest members don't have small positive balances but rather negative balances, and are thus forced to work to pay their economic rent "or else".
> I suggest perhaps examining what psychologist would call your external locus of control, it won’t serve you well in life
When describing how the system works, what else would I use besides an external locus of control? I obviously don't control the economy!
I'm on the financial treadmill the same as everyone else, and take my own actions based on what I can change (internal locus of control). But touting those actions as if they're a solution rather than mere mitigations is falling into the trap of assuming the system can only be this way.
Economically, I'm in the libertarian-Austrian camp rather than progressive-MMT/UBI. It's my experience that when people say to "study economics", they really just mean stop questioning the assumptions of the Keynesian/post-Bretton-Woods regime of overwhelming monetary inflation.
Did I expect a job that anyone else could do to compete for me with a high salary? No way. I wanted a higher salary so I hustled on the side and got a degree in a field that paid more. Some of the people I worked with did the same, some didn’t. That’s the way it goes. I think the people complaining mostly feel guilty about straight to college and a high paying job tract. Think of it as the jobs equivalent of white guilt.
It feels like an era of moral outrage outweighing common sense. And I think social media bears a very large responsibility. Facebook, Twitter etc is creating a generation involved in spending too much time online becoming angry and not enough time actually going outside and changing the world.
The people doing these jobs generally don't complain (they know their situation sucks), and when they do are ignored (everyone else knows their situation sucks). So what stands out in your mind is when someone who seems to have no vested interest in crappy jobs complains about crappy jobs.
People who haven't been forced into living hand to mouth have not internalized the rules of the system as hard. We're therefore more able to envision changing the system's workings, rather than having fully resigned ourselves to living within its rules in spite of its problems.
You worked some crappy jobs, and then succeeded out of them. So you believe you have found a template of success. But the problem is that while it worked for you, it cannot scale to work for everybody. And not because most people are too dumb/lazy/whatever to get ahead, but rather because the system ranks everyone against each other, and then only allows for a few winners - economic position in a debt-based economy is zero sum.
Meanwhile, I fully recognize that in order to have my position as being relatively economically comfortable, there are other people out there who cannot be. So rather than "guilt", which implies some sort of irrational emotional state, it is actually continuing to have concern for the people stuck below me in the system that I am forced to help maintain.
This is the distorted reality I’m talking about.
I have done many types of jobs, including physical labor. I’m way more tired, and usually much more stressed out, after doing what you call “easy” jobs. Often the hard labor makes you feel healthier.
But difficult or hard doesn’t mean physically tiring. It is not easier to make complex decisions, nor to dedicate years of training in order to even begin doing a job.
Some trades require more training. Things like electrical work or plumbing. In those trades people apprentice and as their experience grows so does their pay, often rivaling or exceeding that of software developers… why? Because it take years of dedication.
The reductionism that hard only means physically taxing makes little sense. It leads to the idea that only physical laborers should be paid well, which doesn’t make any economic sense.
Does that mean a factory worker that stand around all day pushing a button should get paid next to nothing? Many of those are physically easy (some even provide chairs) but boring as hell. (And before someone says that factory jobs are all hellish, I have talked to people who have done jobs sorting coffee lids, or monitoring automated work lines. And those people’s first hand experience will tell you it’s often just mind numbingly boring, and not at all difficult)
Ultimately compensation isn’t made against someone’s arbitrary sense of difficulty. Instead it’s made against how many people are willing and able to do the job. And that’s the current distorted reality. Some people are thinking due to pandemic related consequences that there are fewer people willing and able to do the job.
What changes would you make to improve the labor system today? Or, have people in the past already made all the good changes?
> But there’s no free lunch in society
Out of curiosity, what about things like wikipedia or other copy-left works?
Another issue is that unions have lost their strength and have been vilified. Although they are not perfect, they are a critical part of forcing companies to maintain positive work standards. This is where people need to stop complaining about their plight, and stand up for themselves. The laws and systems are in place to support it. People just need to motivation. We’ve just seen this occur when workers voted against unionization at Amazon against their own interests (also demonstrates that claims of massive worker unhappiness just don’t ring true)
As for copy-left, wikipedia etc. Those were donations made from people’s hard work, so again nothing comes free. Such donations should be treasured as such, not taken for granted. I and many others donate significant sums to Wikipedia and the like to promote their existence.
Regarding copy-left, whenever I make contributions to the commons, I do so in order that others may have a zero-marginal-cost lunch, so to speak.
> It’s entitlement, very pure and simple.
There's no such thing as entitlement in a Capitalist market, it doesn't exist.
Value is what the market is willing to pay. If you can't hire people for minimum wage, and you can't get enough workers, then (in Capitalist terms) by definition you are undervaluing workers.
Of course standards rise over time; workers both have more expectations of what they'll be offered as the market becomes more efficient, and social structures outside of the market make it easier for them to be more demanding. But that's the same thing that's true of everything on the market, you can't claim that people are "entitled" because Open Source software makes it hard to charge $1000 for your web framework. If the government builds a free park, you can't claim that consumers are entitled because they stop paying you to go into your private park. Capitalism always exists inside the broader context of social/public resources, and in that context you adjust to the prices that the market demands or you go someplace else.
Part of the confusion here is that the word "value" means different things inside of a market than it does as a non-market, abstract term. It is valid to talk about the non-market, "objective" value that workers provide to a company, but once we start talking about prices inside the market, we have to keep in mind that the market definition of value is different. When we're specifically talking about Capitalism, value is what the market is willing to pay, and the market is not entitled just because it demands more than employers are currently willing (or even able) to offer.
It bothers me a lot when people apply one-directional morality to Capitalist systems. There's always this underlying idea that society needs to be grateful for businesses for giving us stuff, but that businesses don't own anyone anything. The reality is that after a free transaction, nobody should be feeling grateful to anyone. Workers do not owe anybody anything, it's up to businesses to build attractive enough jobs to get them to sign on, and workers do not owe businesses any gratitude or loyalty beyond what the contract states.
If that's disturbing to business owners, I don't know to say; that how Capitalism works, you form contracts. You bought into this system. And certainly, the idea that businesses are allowed to optimize purely for profitability and should be expected to be amoral machines, but that workers still have some moral obligation to know their place and be grateful for what they've been given -- that idea is antithetical to what Capitalism is.
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Secondly:
> But there’s no free lunch in society, and ultimately that’s the current disconnect.
Multiple people have different views of this, I'm not going to act like mine is universal. But I personally believe that an involuntary market can not truly be called a free market. Coercing someone into buying something doesn't result in a completely free, willing contract.
So when I look at the labor market and I see people complaining that workers have unemployment benefits, what I hear them saying is that they don't think a free market for jobs will actually work, and what I hear them saying that they think people have to be compelled into working under the threat of poverty and violence in order to keep the current system from collapsing.
And that's a view someone can have, that's fine; but then it's really hard to turn around and say that the market is necessarily compensating people fairly, because if the only reason someone is taking a contract is because they're scared of what will happen if they don't, then that contract is being made under duress.
My take on the current labor market is that if workers don't feel like they have the ability to quit jobs, and people are calling them entitled just for quitting abusive jobs, and if employers feel that slashing public safety nets is the only way that they'll get workers to take those jobs... I don't know, to me that doesn't sound much like a free market, it sounds like a coercive structure. And maybe it's OK to have a coercive structure, maybe that's just how the labor market has to work. But if that's the case we should at least acknowledge that it's coercive and treat it that way.
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> Prove me wrong with reasoned responses and discussion rather than downvotes.
The thing is, in a certain sense you're not wrong. Moving people's perception of what is "normal" will make them accept more abusive conditions without complaint, this is a commonly understood fact.
But it doesn't add a lot to the conversation, because it doesn't tell us whether it's reasonable to try and lower people's standards. It also feels vaguely anti-Capitalist in the sense that whole point of Capitalism is that over time people's standards should rise and that specialization should increase. Ideally, markets become more competitive over time, not less.
So you're right in the sense that, yeah, if we slashed minimum wage and social safety nets, people would have to take worse jobs with lower pay. If we brought back debtors prison and workhouses, that would probably lower their standards even more.
But if you're advocating that a free market can't exist unless people's baseline experience is so crappy that bad jobs seem good in comparison, then you shouldn't be surprised your view is unpopular.
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Also, generally I don't want to get into the "censorship" stuff, but since we're talking about free markets, downvotes on HN aren't censorship, they're the free market of commenters/readers in the comment section signaling they disagree with something or that they don't think it adds value to the conversation. The marketplace of ideas does not have an obligation to accommodate or prop up every idea. It's fine for the market to just say someone's wrong without providing additional context, in the same way that it's fine for someone to leave a one star review on a product without providing a justification why they did so.
It’s not a fair market when people are avoiding those jobs because they can get paid for not working.
Once the government spending stops, things will change quickly.
And in fact we actually have had the opposite, people willing to give up benefits for worse jobs, gig economy jobs that provide no stability nor benefits. The reason is because there’s not actually a labor shortage at all.
So you might say that the pandemic reset people’s value assessment on the job market. That may be a good thing. But until government payouts stop we won’t see the actual market in a clear light.
For instance here our dog daycare can’t hire enough employees. What’s been happening is people apply, in order to show applications, and then don’t follow up because they’re still able to receive extended unemployment benefits. So at the moment there is gaming of the system.
And you are correct. Downvotes are not censorship. But they are a toxic method to communicate outrage and add little to positive discussions. As has been outlined both from other articles here, as well as recent coverage from the Wall Street Journal, social media companies are well aware these tactics result in increased outrage and mental health issues, but they choose to ignore them because it adds to their bottoms lines.
> what I hear them saying that they think people have to be compelled into working under the threat of poverty and violence in order to keep the current system from collapsing.
But this is ultimately the system of nature. If you don’t provide for yourself you starve. If you don’t provide for your shelter you freeze. If you don’t provide for your safety you are a victim of violence. Society has distributed those tasks, yes, and we can debate that distribution. But you can’t claim that you just shouldn’t have to work to prevent those things. If you assume you have free access to those things, they are being supplied by someone else. So why should they be free for that person and not the provider?
Could we supply those things free for everyone? I and everyone else would love that utopia. But it’s not where the world is at the moment, even if it’s a worthy goal. We need to keep moving forward as a species. Parasitic behavior is a real issue in any area of life, and in nature things balance out via Nash equilibrium.
Well, "fair" is whatever the market is willing to pay and whatever the environment is that it finds itself inside. And the market doesn't get to shape the entire world outside of the market to suite it.
The market exists inside of a society. Sometimes society meets needs that the market would otherwise provide. In those cases it's just kind of tough luck, if you don't like it go find another market. Is it "fair" that Open Source has made certain segments of software impossible to monetize using traditional means? I don't know, but it's reality. Is it "fair" that we as a society are unwilling to let people starve, and that gives them a sense of confidence about selecting jobs? Well, it's reality.
People voluntarily decide to form communities and societies. When businesses enter those communities and enter those societies, they consent to play by the democratic rules of those societies. If society decides that it wants a minimum wage or unemployment benefits, businesses are free to move elsewhere. In fact, they're much more free to move elsewhere than their workers. The average American citizen can not afford to move to another country, that takes money.
So I disagree quite strongly with the notion that giving those people who don't have the funds or ability to move more agency over whether they want to work is some kind of restriction of the market. Amazon could pull out of the US if it really needed to, Bezos is living here by choice. Most of its workers couldn't, most of its workers don't have the ability to consent to the system they find themselves in.
> So why should the be free for that person and not the provider?
Because businesses consented to living in a democratic society with rules, including social safety nets and standards based on whether the society at large is willing to let its citizens live in poverty.
In a lot of ways, the ultimate system of nature for humans is collectivism and government, there has never been a human society that hasn't eventually ended up setting up some system of standards for how far we're willing to let people fall and how much poverty we're willing to subject people to, and that collectivism and shared standard of living is no small part of why we are the dominant creatures on the planet. I disagree that it is "natural" for people who are out of work to starve to death, I think it's very natural for human beings to set up formal structures that prevent that from happening, it's one of the really big things that we do as a species.
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I also want to point out that it's very selective to argue that "fairness" in nature means people having no leverage over whether or not to participate in a market. Even more than that, it's also very... questionable... to correlate "natural" with "fair." Even in a situation where a business didn't the create the problem, even in a situation where a business isn't holding a gun to your head and forcing you to work with threats of violence, a coerced contract is still coerced, and appealing to the natural state of that coercion doesn't really make it better.
If I find you bleeding to death and sell you a single bandage for a million dollars, you can argue that it's not my fault you're in that position. But that doesn't mean the sale isn't happening under duress, it doesn't mean it's suddenly a free transaction. Duress and coercion does not need to be actively created by the party that benefits from it.
I’ll just say this about the video that started all of this. At the moment there is a clear perception issue from some in the society on job fairness. Everyone is entitled to their perceptions, but all I’m claiming is that it is inaccurate, and those perceptions are doing them a disservice. I honestly believe it’s clouded by lack of insight.
I think if you met some of the people I have who can tell you six ways to Sunday how to game the welfare system, collect unemployment, sell drugs on the side etc, you might feel different about that “free market” ideal which doesn’t really exists. Instead look to nature for the truth where you have exploiters in most species around every corner. So we must always be vigilant.
> the ultimate system of nature for humans is collectivism and government
The ultimate system of nature is an evolutionarily stable strategy that involves things like pacifists, parasites, violent struggle, etc. Society attempt to regulate those things and protect from the worst of it, but it can’t make it disappear by itself.
https://en.m.wikipedia.org/wiki/Evolutionarily_stable_strate...
The United States wasn’t founded with the idea of keeping people out of poverty. Indeed it’s primary concern was the protection of private property from the government taking that property without representation. See John Lockes philosophy equating theft to war etc, etc.
Welfare is required to lift parts of the society out of destitution who really truly need it. It’s not meant to provide for perfectly capable people to receive free passes from the rest of society. And that’s part of the problem at the moment causing an illusion in the job market.
As to your point if someone tried to sell me a bandage for a million dollars while I was under duress, I and the rest of the community would remember that person and treat them accordingly. We live in a society, and there are consequences to actions. Both exploitation and parasitism. Those consequences don’t always hold people accountable like they should, and that’s where we get into trouble.
It's fine to have that opinion, I just don't think people should pretend that it's in alignment with the ideals of a completely free market society. Where I lose patience is if someone doesn't have the guts to say that coercion is a major part of our current economy.
If the belief is that we can't entice people to work unless they're scared of poverty, that's just a very different argument than saying that the current systems of coercion are actually voluntary and free.
> I and the rest of the community would remember that person and treat them accordingly. We live in a society, and there are consequences to actions. Both exploitation and parasitism.
Sure, just as long as we both understand that some of those consequences are also sometimes expressed through people voting for policy changes.
Hasn't the last year or so taught us that, unfortunately, that is the only motivator to work that's actually effective enough?
If you really believe that poverty is the only motivator, then fine. Just own it, don't argue that motivating people through threats of poverty somehow makes them more free.
Now we don't have debtors prison, so nobody is actively going to take them and throw them into a gulag, but I already talked quite a bit about why that distinction doesn't matter above, so not sure what to say other than go back and reread previous comments if it's something you're confused about.
One of my favorite quotes is from Star Trek:
“As with all living things, each according to his gift”.
It’s a play on the Marxist adage “From each according to his ability, to each according to his needs”.
It leaves off the second part since what an individuals needs are and what should be supplied to everyone is a quagmire of a problem, given that humans can be selfish and unfair (hence why socialist countries tend to corruption just like the rest). And I fully agree that voting for policy change is a must. So is demonstrating, organizing, etc etc. I just think goals should be clear, and a willingness to understand ones own role, rather than only point fingers.
BTW, I’ve upvoted your comments even if I disagree with them, since they’re insightful and constructive. More of this is needed, and less moral outrage, so thanks.
In your grandparent's situation, they worked the fields because nature took away their freedom, they didn't have a choice about whether or not to work the fields (unless you count dying as a choice, but most people don't). There may not have ever been a person coming and holding a gun to their head and telling them to plow the field, but at the end of the day their situation was the same.
To someone being forced into an abusive job, it doesn't really matter to them why they're being forced into that job. If someone is blackmailing them or threatening them to do that job, then they don't really have a free choice. If a government has socialized the entire economy and is forcing them to work that job under threats of imprisonment, that's not really a free choice either. And in the same way, if the economy gives them no mechanism to move away or improve their life, and if they have no choice except to keep working or to starve, then they are still being forced to work. Their choice is still exactly the same as it would be under any other coercive system.
Natural systems can be coercive, there doesn't need to be a human deliberately forcing the system to work that way. It's about whether or not someone can realistically make a choice.
To me, it is very strange to describe a situation where a worker has no real leverage to choose to do something different, and to describe that person as being free -- regardless of the scenario that has put them into that position. This gets back to a previous criticism, which is that "nature" is very often neither fair nor free. If there is any major praise of collectivism, it's that humans decided to build systems that were more fair and more free than nature would be on its own.
Ultimately every human, and every creature on earth is coerced to work for survival. Thats the only way I can interpret your definition of coercion.
It’s okay to say you want a society where people can feel free to escape that. But that utopia which we haven’t yet reached needs to be earned.
I don’t, and I don’t think anyone has a solution or answer for how to get there.
But as of today, if you want to be free not to work, the only way to do it is to take from someone else who has been coerced by nature to survive and provide.
In the mean time, our society has at least allowed us to provide, each according to our gifts so we don’t all have to be farmers or hunters.
Bettering working and labor conditions should be the goal of all of us in society. Unfortunately it’s not. But as I’ve said in other threads, that’s something that has been and will continue to be fought for.
No philosophy can free any human from that.
This is not a real thing, this is a fake assertion you have invented in your mind. No one is getting paid to "not work". And no, workers who have lost their job, collecting their unemployment they earned during past labour, never counts as getting "paid to not work".
>Once the government spending stops, things will change quickly.
In most places, the paltry, tiny financial aid for workers ended months ago, and nothing has changed at all.
> For instance here our dog daycare can’t hire enough employees
They should consider paying wages. If they paid money for labor, they'd get labour. It's really that simple.
What most "employers" actually want is nearly slave labour, volunteers, like they had pre pandemic. Employers swear up and down that no one wants to work, and then you find out they pay just $15/hr or some other insultingly low slave-like wage (a wage so low that no human could feasibly live alone off of it, much less advance in any way in their life).
A single adult with no debt, and no dependents, in Michigan, "making" $15/hr doesn't even take home enough money to rent a modest 1-bed apartment in the city, much less eat or do anything else with their life. At this wage, the adult is literally poorer every day they show up to work, they are literally donating their labour to a for-profit company. And most people are not "perfect ideal adults", they have children, or student loans, or elderly parents, or a tricky medical condition, or any other totally-normal totally-reasonable life complication that they need money to help cover, so they can show up to do good work for you.
I don't know your local market, but I guarantee if your dog daycare was in Michigan and it started paying $25/hr, they'd fill those positions in just a few days. Their employee "shortage" is a fake problem they have intentionally created for themselves, not some sort of indicator of people's willingness to work.
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Everyone wants to work right now. No one is hiring at a liveable wage. Most reasonable people are not going to get out of bed and go to work all day, just to end the day poorer then they started. That would be insane. But that insanity is what every company seems to demand of labour these days.
Yes and:
With gig work like Uber and DoorDash, the labor is also providing capital (car, phone, etc) with the hope of making it back in tips.
The equivalent of usury, sharecropping, and pyramid scheme, all in one.
This is absurd. What fantasy world do you live in
If you don't want to be banned, you're welcome to email hn@ycombinator.com and give us reason to believe that you'll follow the rules in the future. They're here: https://news.ycombinator.com/newsguidelines.html.
I talked to the owners. The applicants aren’t even asking what the pay rate is or negotiating it. They just don’t want to be out in 100 degree Texas weather picking up dog poop and are holding out while their paychecks still come in.
So real world data, real world talking to people, rather than just conjecturing on the internet.
part of this probably has to do with the fact that many benefits like pto and workman's comp are so heavily gated by bureaucrats that rather than fighting to squeeze blood from the stone, many people simply find they are more rewarded by a flexible schedule and cold hard cash.'
as a point of comparison, i can earn upwards of 90 dollars a day doing 'in home dog-sitting' which basically amounts to playing videogames and sleeping at some rich person's house. i get to choose the dogs & clients i work with, i get to choose when i want to work. i never get yelled at for taking dogs on walks that are 'too long' or threatened for using my vacation time to go to a funeral.
These are the people who you're saying are asking for a free lunch. The people who do things, rather than comment on them. If everyone reached the baseline of worthiness that you've set up, you'd just have more educated strawberry pickers (or import more slaves.)
> But the progress in labor fairness in the US, 8 hour work days, minimum wage, workplace safety, has been fought for in literal blood.
The blood of the people you're talking shit about. Not your blood, not your classes' blood. The you 100 years ago was making this same fucking speech about how spoiled workers were for wanting any of that, and that in your day you had actual slaves who understood the value of work.
This is really a slimy take. If we paid people based on their effort rather than our leverage, there wouldn't be a problem. Free lunches are being eaten, but not by the people who quit washing dishes and waiting tables i.e. making and serving your lunch.
Society can’t function without these jobs. It’s precisely why the jobs are important, why they aren’t demeaning; why people should take pride and be given respect for doing them.
Complaining that working jobs in the sun, or cleaning toilet is beneath you is what I have a problem with, and is what these people are saying.
I think we’re on the same side. There are people who think being a janitor is beneath them and they would never do it… unless of course they were paid a CEOs wages for it.
And that not hyperbole, that’s the hyper distorted reality I think some people are living in.
If you think everyone should be compensated the same, then I don’t think there’s common ground.
If you think there needs to be an increase in minimum wage. Better working conditions, then I couldn’t agree more.
But those things aren’t accomplished by complaining life is unfair. That unskilled jobs pay less than being a software developer. They’re accomplished by working hard, getting out what you put in, and organizing, voting and working for change.
Progressivism is a constant struggle. It doesn’t come for free and that’s life.
It's possible your personal journey is effected by your experiences. 2009 was a financial crisis, when I'm sure many people were desperate for money. Others delayed entering the workforce by taking on college debt. It's not a sign of a healthy economy, but the strategic decisions of millions of people...
And in 2009 there was no pandemic. You weren't risking actual life and limb to work a 9-5. In 2009 most people didn't have smartphones. There was no real option to make money online.
And let's be clear: just because people aren't working for a corporation in a 9-5 doesn't imply they aren't working. Today you can make money online easier (Only Fans comes to mind). The people who become internet models can make more money quitting their jobs and devoting their effort to content creation. And honestly, a pornstar has more prestige and better hours than McDonald's, too...
All this is doing is driving automation at a faster pace and the people who once did the jobs will now have something new to complain about when they have no job available at all in 10 years
Maybe now shop owners will have better incentives to discipline their customers or give humane working conditions. Or you know, barring that, better pay.
About fucking time service workers had some bargaining power back.
A menial job is not menial. It is just a job. Labels like "menial" and "low skill" aren't fair to anyone and are there to sell people on taking less pay.
> About fucking time service workers had some bargaining power back.
This is really the truth. It is about time.
I've made a personal mission of trying to rehumanize every damn job, saying hello, how are you, stopping sometimes to talk about kids or the shitty people leaving shit in the kids playground, or just asking how's the family going. Not only did I make friends with the bus drivers, the street cleaner, the store cashier, the security people everywhere, but now I feel better the pulses of my communities, and have a far less difficult time talking to new people and giving or asking for help. I know those people and they know me. During the pandemic, I just sometimes asked news about family or kids and the amazon drivers here were crushed, their families sick and dying all around. One of them stopped and just cried there. Yes as one other commentor said, it's a job, man up, do it. But also, when there's a crying father there telling me he's been yelled at the whole week, he's been late for deliveries for days, and getting his pay docked, fuck ALLL that. Come on, have a water, a coffee if you can stomach it, late for late... And talk. Learned some of my neighbors needed a talking to. No one deserves to be treated like that. I... didn't see people were so shitty to each other, especially what one lady called 'the help'.
Even the people I'm never gonna see again, it costs me almost nothing to say hi, hope your day's OK, thanks, and it brings sometimes the simple joy of talking for 2 minutes and feeling all fucking human. Some make it hard (uber eats kids...) but still, hi, everything OK? How's your family? I can't do much, but tipping and talking, yes.
And don't let me started on making your salary almost only from tips. You're really wondering why you can't find 'help'?
Honestly it's such a leap of logic that likely no one understands what exactly the thrust of your comment is trying to get at.
I'd like to look at the more charitable part of the argument: "back in my day, we worked shitty jobs and we liked it, because we needed money". Ok, sure. But the economy was different in the past.
Many people need to work 2 jobs to maintain the same standard of living. At the same time, the prestige and respect of such jobs have declined. There are less paths to retirement. This is a logical response to a system that is overworking people, without long-term prospects.
If people are choosing other options instead of going back to their shit jobs, and the system isn't providing good enough opportunities for enough people that's a failing of the system, not of those people for lacking a strong Protestant work ethic and not rolling over and letting themselves be exploited.
Anyway the video is about these people choosing to work for themselves or being otherwise entrepreneurial, not being entitled and lazy like you are implying.
It sure is damn noble. Someone has to do it, or we all have to. And I give those people amazing props for doing those things.
Many of us have either done those jobs and taken pride, or have family who have in order to better the lives of those children. Saying that work is not noble is demeaning to those who worked for your current standard of living.
The video is about people choosing better opportunities for themselves. If there aren't people to do those hard jobs, then those jobs need to compete with the opportunities these people are choosing instead, for example through higher pay. Saying these people should choose worse work, for the benefit of others (eg. business owners), by appealing to some nebulous concept of nobility is exploitative.
can't get workers to work hard 8 hours a day doing hard labor, maybe add more breaks than the minimum you are legally required to? Or maybe stop suspending the workers next two shifts because they were 5 minutes late from traffic 1 too many times? Maybe consider that threatening to fire workers if they don't work late or overtime isn't productive? Maybe stop paying minimum wage which hasn't risen with inflation or rent prices and increase your prices out to compensate or consider that if baseline worker wages have risen slower than inflation, but management's wages has risen faster than inflation, you've had to do so off the back of your workers ability to have spending money outside of barely living.
However in a tough time like this, it's disadvantageous to a society where everybody just look after themselves. I bet you in Japan this type of problem and question are less wondered, as people are treated by and treat the employer as home/family, took a personal interest instead of merely a means to make living, although at least in the past not sure it's still the case nowadays.
True, what's feasible in Japan may not be suitable to a multi-culture society like US, or many other countries. But human motivation and value system are more or less the same across the globe.
For example, some companies make employee their partners, gives stock options no matter how small percentage it is, a real bounding exercise must be financial based.
Relying on enchanting employee to work relentlessly while in truth they're just pawn ready to be dispensed at any moment, how many cycles does any employer seriously think such trick will last before any employee with even below average IO would figure it out? It's not sustainable.
The social aspect is vastly different in many countries where the shareholder and employer, or at least the manager treat its employees nearly like family. Yes you get a pay cheque and profit is the ultimate goal, but the bond between workers is so strong it influences business decisions. Some will hire a less competent candidate simply because he is close to the worker community, it provides trusts and reinforces the "family" structure. Japan is mentioned, but it applies similarly to most countries in Asia, and to some degree other continents as well. It is often not spoken of or display, or accounted for explicitly. Humans develop and break those bonds as things go along.