I don’t think this works. You’re going from a thought experiment with exact numbers that would agree with me, then throwing them away to use a heuristic and saying that somehow pay would go down.
Your thought experiment doesn’t really match the current situation, since >8 hour days aren’t actually banned, they just cost 50% more, but assuming there was an actual ban...
Specifically, the problem is that when the 8 hour work day is abolished, the supply of hours that cost $x stays exactly the same, while the supply of hours that cost $2x and $3x increases. The additional supply of more expensive hours doesn’t help the employers’ negotiating position at all. Or to be specific, the fact that Walmart now has a much larger supply of people willing to work for $24 per hour doesn’t help them hire people for $12.
One way this could effect things is to increase income inequality, if some people are 4x as productive, it would be better to hire them for as many hours as you can get than to hire additional lower-productivity people, but it’s weird to talk about this in terms of businesses exploiting people since total pay would actually go up.
I don’t think this works. You’re going from a thought experiment with exact numbers that would agree with me, then throwing them away to use a heuristic and saying that somehow pay would go down.
Your thought experiment doesn’t really match the current situation, since >8 hour days aren’t actually banned, they just cost 50% more, but assuming there was an actual ban...
Specifically, the problem is that when the 8 hour work day is abolished, the supply of hours that cost $x stays exactly the same, while the supply of hours that cost $2x and $3x increases. The additional supply of more expensive hours doesn’t help the employers’ negotiating position at all. Or to be specific, the fact that Walmart now has a much larger supply of people willing to work for $24 per hour doesn’t help them hire people for $12.
One way this could effect things is to increase income inequality, if some people are 4x as productive, it would be better to hire them for as many hours as you can get than to hire additional lower-productivity people, but it’s weird to talk about this in terms of businesses exploiting people since total pay would actually go up.