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I agree with the supply and demand equation...but you have to calculate in a HUGE 3rd factor...WELFARE!!!

I believe more people are on welfare then are working and will pick what is "perceived" to be in their own best interest as to work or not work......but do your own DD

I believe more people are on welfare ...

I think you have part of the answer. I think some now see benefits as a basic and look at work as something you add on or compare to. For instance, if food, housing and phone are covered by benefits, what is going to get one motivated? $8 per hour gross verses “hanging” out or should they go for a full time job at say $20 per which will reduce benefits to zero while taking away all they free time? I know someone who makes this calculation, perhaps it is anecdotal??

Then there are the parents of these snow flakes who support their leisure lifestyle. I used to work with a lady whose dad left a huge estate. Her comment once was why should her son work, he has money. I asked why she was working? She said because she likes the job. I was amazed. It stopped being funny when mid day she gets a call from the west coast where junior was involved in a rather serious accident while bombing around SF enjoying the trip.

I agree with the supply and demand equation...but you have to calculate in a HUGE 3rd factor...WELFARE!!!

And the fourth factor: How much value does the employee bring to the company?

That one can be harder to calculate, depending on the job. One of my business management books said that the rule of thumb is that an employee's cost to the company is roughly 2.5X what that employee actually gets paid. So, as an example, if an employee gets $20 an hour, but isn't providing more than $50 worth in value, then they're costing more than they're worth. And some tasks, no matter how well they're done, are not going to provide a whole lot of value. That creates a pay ceiling. If a given worker is demanding a wage that's over that ceiling, then they just aren't worth hiring.

That's a forgotten factor in the "you just aren't paying enough" argument.