4 May 2011

If it is good for employers, it must be bad for employees

Raquel Varela gives us a neat application of class struggle theory, proving the new IMF-induced measures mean, in fact, a wage reduction. One of those measures is the reduction of social security taxes paid by employers. It's easy to understand why Raquel thinks this is the same as a wage reduction: if employers pay less taxes to fund social security, employees will have fewer social rights. It's a wage reduction, in fact.

Now, my argument may seem to come from another world, a world the author of the post would probably call petit-bourgeois. The argument is: in a country where most companies are small companies in which employers work alongside employees and earn wages as any employee, with mostly non-existent profits, this measure may help companies create jobs and — people will laugh, with their "employers are evil" mind-frame — increase wages in some cases. It may be a good thing.

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