> The conditions and wages that the market can bear aren't some physical universal constant that exist in a vacuum - they are a product of labor market laws and regulations.
It's wrong.
The conditions the market can bear are based on market demand. If the demand isn't there, businesses will have nothing to offer, so it wouldn't much matter what kind of regulations are in place.
Regulations don't produce demand, unless they require people to buy things they would not otherwise buy.
Regulations can only work with the demand that exists in the market. For example, if the market demand for delivery services would only be enough to support a wage of $5/hour for workers, but the law said the minimum wage must be $10/hour, the result would be that all delivery companies would fail and there would be no jobs for delivery workers -- unless the government stepped in with subsidies as I mentioned before.
> The conditions and wages that the market can bear aren't some physical universal constant that exist in a vacuum - they are a product of labor market laws and regulations.
It's wrong.
The conditions the market can bear are based on market demand. If the demand isn't there, businesses will have nothing to offer, so it wouldn't much matter what kind of regulations are in place.
Regulations don't produce demand, unless they require people to buy things they would not otherwise buy.
Regulations can only work with the demand that exists in the market. For example, if the market demand for delivery services would only be enough to support a wage of $5/hour for workers, but the law said the minimum wage must be $10/hour, the result would be that all delivery companies would fail and there would be no jobs for delivery workers -- unless the government stepped in with subsidies as I mentioned before.