not enough

Operating under the previous conditions, let’s see what happens when prices are not restricted by the income of workers.

Workers will continue to receive the same daily wage, 8F, to satisfy the needs of their families, while the owners receive 3 and 2 times this amount, respectively. As before, when we take into account the total income of the social arrangement,

24b + 24m = 56F

and

b + m = 2.33

Then, at a minimum,

24b = 32F and b =/> 1.33F

24m = 24F and m =/> 1F

The companies will now, at least, avoid a loss by selling to the higher income consumers -in this case, the owners-, but the workers won’t be able to satisfy their families’ needs in their totality.

 

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