Friday, May 18, 2012

Liability Based Wage Controls and Socialization of Wage

If the Fair Pay Act is ever passed here is my suggestion to those of you who own a business. First, I suppose the wage socialization bill will not cover men. In this case it will be a liability for employers to give men raises or to hire them at a fair market competitive wage. Any company that pays men on merit, work ethic or prior and thus existing fair market wage value will pay the price for it. It will be a liability to attempt this.

In the future, if you do not mitigate your risk then the incentive is for wages to be collectively confiscated from men then socialized and redistributed to women. This redistribution is an applicable way to mitigate risk BUT it is not competitive and thus not tenable. You will be paying workers based on liability and not free market principal. To do so is not good for business. It is essential to recognize that men and male production are no longer applicable to the free market.

So in order to maintaining a free market is important to recognize there will be NO liability for employers to pay women competitive wages, to give them raises or to pay them differently Therefore, in order to maintain a free market paradigm it is best that no male workers be hired and if they are, keep them outsourced. This will allow you to remain competitive. In no short order however the entire male labor pool will experience a lowering of their wages after the bill is passed. This will take time. At this time you can then begin to extract this labor value by paying them less than a female worker. Feel free to hire males at this point but never allow them to be compensated based on free market principals.  Men will accept lower wages over time. Their experience of compensation is relative.

However, if your core infrastructure is in a typically male field of business and men are essential to populate the ranks of core infrastructure, make sure to outsource your female workers so as to maintain gender segregation. This will lower your liabilities and raise your ability for free market competition for the male worker base you maintain.

My best suggestion to employers would be to stratify their labor pool among outsource companies according to which gender predominates your sector of business. In the beginning, after this law is passed, any workers brought into the core infrastructure as direct hire must be female if at all possible. The reason being is that you can pay your female direct hire employees different wages according to merit, work ethic and free market value. As stated before however, when the market catches up to the liability placed on giving males free market wages, this will make male workers cheaper to hire for the same work. It is at this point that male wages will be lowered overall INCLUDING in relation to your female workers who are still compensated according to free market principals.

 Until the stabilization and redistribution of wealth to females takes place, do not hire males. Maintaining free market economics within your core infrastructure is crucial for productivity and market competition. The principals of free market economics and efficiencies will only apply to the female labor pool. This must be used to your advantage. Remember that applying free market value to male production before the redistribution takes place it is not good for business. After the redistribution of wealth to females takes place and male wages are driven down across the labor market you may begin to hire the newly created male underclass of workers at a lower price than the non marginalized female labor pool.  More on liability based socialization of wages can be found in the complimentary article HERE 

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