Throughout my work life, I have been told numerous times that my wages were in line with industry standards. For some reason, this bullshit answer actually shuts down any follow up questions regarding increases in workers wages. How can you argue with wages that are in line with industry standards? Every one else is getting the same.

But we should. Start with why is keeping wages in line with the industry standard even the goal. Wouldn’t you want to have the best wages to attract the best workers? Keeping wages in line with a standard wage is unfair to the regular worker particularly if the company is a financial success.

I understand if a company is struggling and needed wage concessions to survive, the employees might agree to those cuts in order to keep the company going. People wouldn’t be saying you have to keep your wages in line with industry standards. The company needs saving, sacrifices have to be made.

Then why would you say that when the company is successful? Shouldn’t the workers share in the success of the company?

The concern is that if one company gives their low wage workers a pay rise, that other companies, within that industry, will have to pay higher wages in order to compete. Yes, exactly, after all isn’t that what market capitalism is all about. The best workers should get best wages. But, no, this isn’t the case. Wage increases at the low end of the scale causes inflation.

This same philosophy, however, does not apply to wages at the high end of the scale. Large increases at the high end of the scale doesn’t cause inflation to the broader economy because fewer people receive them. It does, however, cause wage inflation for those few people who get them. This is why there has been such a dramatic rise in wages for upper management.

This isn’t, however, capitalism because the low wages are artificially low to control inflation which everyone agrees is important except when it comes to prices and executive wages. There is an industry standard for low wage workers and companies want to adhere to this standard to keep wages low across the industry. Inflation, you know.

So whenever I hear people moan about how bad employees are today, I ask — are you paying above market wages in order to get the very best people. If you want good workers, you have to pay for it. Right? Isn’t that the whole spirit of market capitalism. If not, then why exactly do you think your industry standard wages will get you the employees you want? It makes no sense in a capitalist economy. You should expect mediocre employees with little interest in putting in their full effort into the job because they could lose their jobs today and find a comparable job tomorrow.