If the market determined pay (employees shopped around and companies wanted to pay low), the resulting pay would be, presumably, lower than what people are comfortable with. Why is this? Are there any policies which have resulted in this gap? It seems unnatural to me.
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Conventional wisdoms says surplus of labor supply will not result in everyone withdrawing from the labor market, because people still need to eat. Instead, wages approximate minimum wage, or the wages negotiated by unions, unless you compete in a segment with labor shortage
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The gap between 'what people are comfortable with' and 'market-determined pay'
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Why is this?
Because capitalism ulrimately rewards greedy... selfish... heartless cunts
Prior to this utilitarian principles and an overwhelming sense of community ruled human social systems
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this sounds so overly simplistic that i don't even know how to begin to respond
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The free market is a load of shit that people sell as an excuse to exploit those who don't have the power to dictate their pay.
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I feel like I'm disagreeing with you, but it's not like disagreeing with a complex 'golden age of TV' gray villain; more like disagreeing with a villain that's sitting in a throne and a great hat and twirling a mustache.
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Pay that way is determined more by the employment rate. When employment is high, wages are high entice the limited unemployed to work. When employment is low, pay drops as the unemployed will look for anything that pays.