Is a low wage society good for the economy?
It is very simple really.
If we want greater industry and greater prosperity, then people have to have more money to spend. For the vast majority, that can only come from higher wages.
Forcing down wages is a spiral to destitution.
Right now, most of the productivity available for our economy is being extracted by oil producers and speculators in the oil markets. The cost of producing oil hasn’t gone up for most producers, but the profits certainly have.
There are a lot of deep issues with our economic system – some on my blog site https://tedhowardnz.wordpress.com/money/
Perhaps the deepest is that money does not value abundance. When something is abundant (like oxygen in air) it doesn’t matter how important or valued it is, it has no monetary value.
Thus money cannot deliver abundance to all. It will only give the illusion, and deliver an equilibrium situation of the level of scarcity that delivers the greatest economic activity.
Perhaps a better question is:
Is allowing economic factors to dominate our decision making good for people?
And to me, the answer is a very clear No – even allowing for all the great things that have resulted from our current system, it has come close to the end of its utility. It is now time to move beyond economics into an era of abundance for all.