The Cannibalization of the Young: An Analysis of Labor Exploitation
Abstract
In an employee-employer relationship, an employee typically cannot fulfill all of his or her biological needs without working. This provides an advantage to the employer in setting the price of employment. Since biological needs are highly price- and income-inelastic, an employer can reduce the price of employment by negotiating a lower wage, requiring longer or worse working hours, or requiring work to be done under worse conditions than the employee would otherwise accept had he or she already fulfilled his or her biological needs. The resulting change in the slope of the demand curve for these needs results in value extracted by the employer from the employee due solely to the employee's inability to fulfill his or her biological needs without working. The rapidly intensifying exploitation of young workers by predominately older corporate shareholders via this mechanism--in addition to a high tax burden on the young to subsidize predominately older government beneficiaries while the young themselves are faced with a deteriorating safety net and declining labor protections--has resulted in a decreased real median income per unit output for young male workers, a calamitous decline in fertility in "developed" and "developing" countries alike, and an alarming decline in youth physical and mental health in the United States. Solutions to these issues are highly cost-effective but must be implemented rapidly to mitigate increasingly severe catastrophe.