fatvegan

I hadn't even thought about this until now. Which is odd, because I've pondered the IR reforms quite a bit. But one of the effects will be, in theory and probably in practice, to transfer all the worker surplus to the employer. They've effectively allowed companies to price discriminate perfectly, so everyone who doesn't have the power to negotiate will end up working for their reservation price. Unless, of course, John and Peter are right and people will bargain some of it back. Although there's nothing stopping people from bargaining their wage up now, so they still haven't gained anything.

The effect isn't just going to be lower wages for everyone. It will probably be that everyone works for the minimum they are willing to work for. Unless they would earn less than the fabulous new Lower™ Minimum Wage, in which case they'll get that. All the difference will fund community development for the very wealthy.