Let us assume, for the moment, that labour is not prepared to work for a lower money-wage and that a reduction in the existing level of money-wages would lead, through strikes or otherwise, to a withdrawal from the labour market of labour which is now employed.
– THE GENERAL THEORY OF EMPLOYMENT, INTEREST AND MONEY, John Maynard Keynes
I picked that brief passage because it’s a relatively easy one to digest from Keynes, who had a rather inscrutable style of writing. What we now call “affordability” was described by Keynes as the difference between money-wages and real-wages; i.e., take-home pay and its buying power.
Yesterday, at a restaurant I met an employee of my former, longtime employer. He works at the restaurant on weekends as a second job. A young, married dad with a college degree, his full-time technology job doesn’t pay enough for him to make ends meet.
I was underpaid there myself for a long time, but eventually the company made good on its promises. I hope it does for him as well, so he can keep his family in Massachusetts.
