The argument is sometimes made that if the only options available to a person other than starving are working for a wage for one of any number of employers, where none of those employers offers a wage that allows the person to do anything more than subsist, then that person’s eventual agreement to work for one of those employers is as good as coerced. My constitution is such as to tend to be sympathetic toward a view like this one. But I have a counterargument that I’m interested in discussing.
Imagine an idealized world containing just three individuals, A B and C, each of which is fully self-sufficient. They trade with each other, but none needs any of the others to survive comfortably. Moreover, A, B and C are perfect libertarians in the sense that none of them would ever enter into an agreement involuntarily, and none of them would ever enter into an agreement in which the other party does so involuntarily either.
Now let’s assume for the sake of argument that the concept of a “voluntary agreement” excludes any kind of wage-slavery arrangement. In other words, let’s assume (for something like a reductio argument, as you’ll see) that no agreement that says “I’ll work for you for a subsistence wage” is voluntary if every moral option available to the “I” just referred to would amount to living on a mere subsistence wage. In such a case, let’s say, the “I” just referred to would be in some sense coerced into any such agreement–because he must enter into some such agreement or else steal or starve.
Sadly, a meteor strikes A’s property and completely wipes him out. A survives, but he now has nothing.
Now here’s one way things could go. B and C could see an opportunity here. They could each offer A a work contract. He has no bargaining power, so he’s at their mercy. So the contract each offers him amounts to working in perpetuity for them at a mere subsistence wage. They don’t particularly need his labor–it would be a matter of mere convenience for them–so even if they compete for his labor, neither is going to go very high. In the end, the best he can get is a subsistence wage.
Like I said, that’s one way things could have gone. But remember, A B and C are perfectly psychologically constituted libertarians. They would never enter into an agreement in which either side is entering involuntarily. And by hypothesis, a subsistence wage contract, where the person making the wage has no better moral option than to enter into some subsistence wage contract or other, is involuntary. So not only would A never enter into this contract–B and C would never offer it.
Sounds nice, right?
But a subsistence wage contract, recall, represents the most B or C are willing to offer for A’s labor. Since that contract is not one they’d be willing to extend, it follows they’re not going to be willing to enter into any agreement at all with him! A is completely and utterly screwed. He must either steal or starve.
So then–in this scenario anyway–the idea that says “working for a subsistence wage when you have no other options is tantamount to slavery” leads, when followed perfectly, to a situation in which people who are unfortunate are made to either steal or starve. There is no other way out for them.
The conclusion would seem to be this, then. Either:
A. “wage slavery” is voluntary after all (and we must articulate a concept of voluntary association which permits such agreements) or else
B. it’s not true after all that all associations must be voluntary, or
C. Past a certain level of misfortune, people should either steal or starve, or
D. The hypothetical scenario described above is not useful for thinking about the question of whether wage slavery is voluntary and of whether all associations should be voluntary.
Please tell me your thoughts.