What's your labor worth? Most would say it is worth a lot more than what I am being compensated for. Is that so? Take an example of a person earning minimum wage. In the state of Florida where I reside, as of 1st January 2012, it is $7.67 per hour. Since I don't agree with the concept of a minimum wage, and I don't consider myself 'skilled', let's say I agree to work for $4.00 per hour. I am sure at that rate I would find plenty of employment although it would be illegal to work.
If I decide to work for full day, I will earn $32.00 for the day. At the end of my laborious day, I go to my local shopping complex where 'shopping is pleasure'. Among my grocery, I buy a loaf of bread for $1.27. Now think of this for a moment. My dollar has a huge strength. Even after losing somewhere between 95-98% of its value since the inception of the Federal Reserve System, it can buy a loaf of bread for less than half an hour of my labor.
Can't visualize the worth of your labor yet? Think about the cost of making the loaf of bread yourself with bare hands. The cost would involve land, labor and capital. You will need some capital in order to buy the seed, water, fertilizer, pesticides etc. You will need land to grow the crop on. You will need to put in the labor to take care of your crop and protect it from various threats and to harvest it. You will also need capital and labor to convert that wheat into bread.
At the local supermarket, you can not only buy the same loaf of bread for $1.27, you also get a choice between wheat, white, whole wheat, multi-grain and a plethora of other types that you hardly have time to notice.
Do you see how much your labor is worth now? Do you know what made it worth so much? Between now and the beginning of civilization, a lot of capital has seeped into the society making it extremely fertile. Huge amount of automation has occurred that has added exponential efficiency into the system.
Makes me wonder how rich would we be if the money had maintained its value?
If I decide to work for full day, I will earn $32.00 for the day. At the end of my laborious day, I go to my local shopping complex where 'shopping is pleasure'. Among my grocery, I buy a loaf of bread for $1.27. Now think of this for a moment. My dollar has a huge strength. Even after losing somewhere between 95-98% of its value since the inception of the Federal Reserve System, it can buy a loaf of bread for less than half an hour of my labor.
Can't visualize the worth of your labor yet? Think about the cost of making the loaf of bread yourself with bare hands. The cost would involve land, labor and capital. You will need some capital in order to buy the seed, water, fertilizer, pesticides etc. You will need land to grow the crop on. You will need to put in the labor to take care of your crop and protect it from various threats and to harvest it. You will also need capital and labor to convert that wheat into bread.
At the local supermarket, you can not only buy the same loaf of bread for $1.27, you also get a choice between wheat, white, whole wheat, multi-grain and a plethora of other types that you hardly have time to notice.
Do you see how much your labor is worth now? Do you know what made it worth so much? Between now and the beginning of civilization, a lot of capital has seeped into the society making it extremely fertile. Huge amount of automation has occurred that has added exponential efficiency into the system.
Makes me wonder how rich would we be if the money had maintained its value?
