Question:

Assume that a “laissez faire” economy would approximate the assumptions of classical economics. Classical economics tells us that in the long run wages will stabilize at subsistence levels. Is it fair to ask workers to labor for subsistence wages?

Answer:

Just the opposite is true. In a free economy, wages increase, so few workers stay at the lower rung of the economic ladder. That’s why U.S. workers have such high wages compared to the rest of the world. That’s why 90% of our work force makes more than minimum wage, even though no law requires employers to pay more.

(For a more detailed understanding of this subject, see my book Healing Our World, chapters 2-4.)