More income or more free time? This is how the market economy responds
More income or more free time? This is how the market economy responds
A daily journey into a better future / No. 59
Good morning from Berlin,
At the weekend I took the train to visit friends in northern Hesse. On the train the Deutsche Bahn was recruiting travellers for new employees. The following advertisement dangled above my seat (see also photo above):
"Is it important to you to be able to choose between more pay and more free time? Join our team and discover what we can offer you."
I like the ad. It shows how the market economy contributes to the best of all possible lives.
What do I mean by that?
It goes without saying that most people want more money AND more free time. But we don't live in Cockaigne.
If society had its way (e.g. under socialism), people would have to work a lot and have little free time. Because then the tax revenue and the income from social security would be high, which pleases society as a whole.
In comparison, within the rules of the market economy, people have to bow to reality, but they make a trade-off between income and free time according to their individual needs. Society does not force them to work particularly long hours, nor can people delude themselves into getting both desires fulfilled (more money and more free time).
The result of individual decision making under the constraint of reality: maximum well-being.
Onwards,
The Strolling Economist
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