Does Capitalism Exploit Workers?

I understand that someone may find fault with Matt’s assertion in the video above that laborers in an unhampered market economy are paid “almost the same level” as the increased revenue an employer receives. That discrepancy in wages is largely due precisely because competition rarely, if ever, takes place under ideal circumstances characteristic with neoclassical “perfect competition.”

That does not imply coercive intervention can remedy non-ideal market conditions. A good reason for being skeptical of using government to better market conditions is that the means by which democratic government decision-making is made suffers from even greater distortions. But even if corruption and self-serving decision making could be bled out of the system, government planners would still lack the cumulative knowledge or wisdom as what is already possessed by market participants.

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