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9 Some critical remarks and conclusions on the developed model and outlook for further necessary investigations

The following remarks refer back to the original separate model of the labor market as discussed in detail in Sections 2 to 7.

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9.1 The labor market model is a study model

The model is a study model in the sense that no attempt was made to illustrate the labor market found in the real capitalist market economy as precisely as possible. Instead, an attempt was made (of course inspired by the real market) to formulate an idealized model and to investigate by means of simulation calculations whether the principle is suitable for causing self-optimization. This model is intended to provide a profound basis for discussion in the area of the different evaluations of the problems of the existing market and the development of ideas as to what a labor market could look like in a social or socialist market economy.

Accordingly, this model cannot show how a wage level develops in the conflict between the owners of the means of production and the wage earners represented by the employers' association and the trade unions. In my model the nominal wage level is predetermined based on assumptions and is constant over time. Instead of collective bargaining the wage relations between the various professions are altered by a principle of supply of work in different professions by the workers and the request for a needs-based structure of work by the employers. The wages of the different professions can rise and fall, while the wage level remains the same.2)

The positive result of this model is the statement that a system of wage relations actually exists for a free labor market, which ensures that every worker has the best income opportunities in exactly the profession where one should also work in the interests of maximum productivity for society as a whole. This means that with this optimal wage system the worker will strive for the right job on its own and not have to be forced to do so by others, e.g. by sacking or by duty.

In addition, another positive result is that this optimal wage system does not have to be calculated by experts using theoretical models, but that it occurs when one slowly shifts the ratio of wages depending on supply and demand, e.g. on the basis of statistical evaluations, by lowering the wages in professions with a relative oversupply and raising the wages in professions with increased demand.

But this can only work if these wage changes cannot be abused by the employers to gradually lower the wage level further and further so that the wage level becomes the battleground of the classes. A free labor market therefore only has a chance in an exploitation-free market economy.

I hope that in a really social market economy with this roughly drafted labor market an instrument can be found with which on the one hand there is sufficient differentiation of wages in order to create a meaningful performance principle, and that, on the other hand, the extreme differentiation of the capitalist market economy can be avoided. However, further investigations are necessary for this.

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