>The “living wage” argument is really an argument that the government should turn over the responsibility of running the social safety net to private businesses (e.g. Harvard must pay a single mother more—enough to level past food stamps).
While I understand your argument and it's not factually wrong, it misses a few key details - chiefly the one that private businesses continue to try to lower costs by any and every means necessary, including seeking out and taking advantage of cheaper labor, and by participating in regulatory capture. Both of these are highly counter-productive to the overall health of the country's economy. If private businesses insist on being able to pollute, engage in anticomptetive practices, corrupt our lawmakers - all to ensure that they make more money, we have to as a society insist that yes, they MUST pay more to their laborers, especially if the businesses insist that they continue to pay their C-Suite an inordinate amount of money for no particular reason.
A system where corporations take on government responsibilities in return for monopoly powers and other market barriers is something like the worst of all possible worlds.
It is a bad system, for sure, but the problem is that the stock markets reward corporations time and time again for entrenching themselves into monopolistic positions within their respective economic sectors.
Regulatory capture sucks, but good luck telling a congressman that they can't accept ~bribes~ donations or promises of cushy future employment situations (or jobs for their relatives) in exchange for favorable legislation. Those who are uniquely positioned to end the problem are also uniquely positioned to reap tremendous rewards from ignoring the problem.
While I understand your argument and it's not factually wrong, it misses a few key details - chiefly the one that private businesses continue to try to lower costs by any and every means necessary, including seeking out and taking advantage of cheaper labor, and by participating in regulatory capture. Both of these are highly counter-productive to the overall health of the country's economy. If private businesses insist on being able to pollute, engage in anticomptetive practices, corrupt our lawmakers - all to ensure that they make more money, we have to as a society insist that yes, they MUST pay more to their laborers, especially if the businesses insist that they continue to pay their C-Suite an inordinate amount of money for no particular reason.