Haley works for a lifestyle company with a history of selling dodgy products. The latest one is stickers. Her boss wants them tested but can’t use animals. So, she uses the next best thing – her assistants. But first, she has some really important questions to ask. This clip demonstrates the importance of labor law and regulations. Without regulations that are enforced, some employers might require workers to complete dangerous tasks. Even with regulations, this still happens. How does this clip show that Haley’s boss knows about the danger and about the regulations but doesn’t care?
See more: entrepreneurism, incentives, labor law, product differentiation, rationality, regulation, safety, testing
Mitch is working on a big case about the rights of vulnerable workers. In it, he argues that a company is preying on the lack of options available to people who are homeless and hiring them for extremely low wages. He believes that this is a violation of labor laws and tries to get the notice of the press. However, Cam is stealing the spotlight as a successful high school football coach who is openly gay. Traditional economics holds that trades which are voluntary (such as employment) are mutually beneficial. As such, is the company truly taking advantage of its workers or do they benefit from the employment opportunity? Political economics suggests that you cannot ignore the power inequality between the company and the workers. When a large power imbalance is present, exploitation is possible. Which is more in line with Mitch’s perspective? Traditional economics or political economics? Would the people who are homeless be helped by increasing the wage? How would that impact structural unemployment?
See more: altruism, externalities, income inequality, labor law, living wage, negative externalities, political economics, private benefits, social costs, specialization, structural unemployment