Fun fact, the US has always had some of the highest wages in the world- even dating back to colonial times before 1776. Adam Smith did a detailed accounting of them, going occupation-by-occupation and noting that American colonist wages were higher than on the British mainland. (I'm excited because I literally just read this last night. I would link if I could to the specific pages in my book).
I believe the standard explanation is that most of the colonists were British (already a high-wage country at the time), and you really had to pay skilled labor to get them to leave & settle on a new continent. Plus labor mobility between the proto-state governments of the time (Virginia, Massachusetts, etc.)
Perfecting Parliament, by Roger Congleton. It's a history of the global move towards parliamentary systems. Obviously not primarily an economics book, but he does touch on some econ themes- here Congleton quoted Adam Smith on American colonial wages
Mostly because most people have lots of options for employment and they typically don’t take the low options. In a place with nationalised healthcare you would still be paying for it through taxes paid by the labourer but I guess the system would be a bit more progressive than in the US so lower-skill labour would demand a smaller premium for healthcare. Though I think there’s probably more than just labour costs in the US. Eg maybe it is expensive to get the right permits to install fibre optic cables.
Fun fact, the US has always had some of the highest wages in the world- even dating back to colonial times before 1776. Adam Smith did a detailed accounting of them, going occupation-by-occupation and noting that American colonist wages were higher than on the British mainland. (I'm excited because I literally just read this last night. I would link if I could to the specific pages in my book).
I believe the standard explanation is that most of the colonists were British (already a high-wage country at the time), and you really had to pay skilled labor to get them to leave & settle on a new continent. Plus labor mobility between the proto-state governments of the time (Virginia, Massachusetts, etc.)
what book?
Perfecting Parliament, by Roger Congleton. It's a history of the global move towards parliamentary systems. Obviously not primarily an economics book, but he does touch on some econ themes- here Congleton quoted Adam Smith on American colonial wages
Mostly because most people have lots of options for employment and they typically don’t take the low options. In a place with nationalised healthcare you would still be paying for it through taxes paid by the labourer but I guess the system would be a bit more progressive than in the US so lower-skill labour would demand a smaller premium for healthcare. Though I think there’s probably more than just labour costs in the US. Eg maybe it is expensive to get the right permits to install fibre optic cables.