Capitalism and SSOL

Among existing economic theories, capitalism often stands out as the most practical system to implement. It aligns naturally with consumer desires: every purchase is effectively a vote for what should be produced, and producers are motivated to supply goods that people want. The more consumers buy, the more profit a business earns—and the more purchasing power those entrepreneurs gain in return. It’s no coincidence that black markets worldwide default to a capitalist framework: at its core, capitalism rewards those who meet consumer demand.

However, there is a significant downside:

Human misery is extremely profitable.

It always has been, always will be. History offers countless examples of individuals and organizations profiting from exploitation, whether through war, genocide, slavery, sweatshops, child labor, forced prostitution, or war profiteering. Even in the best societies, some businesses capitalize on desperation — providing lifelines with burdensome strings attached, then exploiting those who have no better options. It is even worse when the victims praise these “benefactors” until they realize how deeply they’ve been taken advantage of.

Again, human misery is extremely profitable.

No economic system—capitalist or otherwise—is immune to exploitation. However, many modern societies use laws and regulations to try and mitigate these abuses. Child labor is outlawed, slavery is illegal, and businesses face rules governing workplace safety, hours, and wages. The theory is that violators will face fines, legal action, or imprisonment.

The Societal Standard of Living (SSOL) is simply another layer of protection. It’s a rule designed to safeguard workers from the negative aspects of capitalism, ensuring that people earn enough to cover basic necessities. Like other labor laws, SSOL strikes a balance between preserving the efficiency and freedom of markets while preventing exploitation that thrives on desperation.

Part 2 of SSOL is especially crucial. It leverages the core capitalist principle—maximizing profit—to encourage businesses to lower the cost of essential goods and services. Under SSOL, the minimum wage is tied to the publicly available prices of essential items. If companies want to reduce labor costs, they can’t simply slash wages; they must reduce the market price of the goods that factor into SSOL. Since these goods are part of an inelastic market, the only real way to lower prices is to increase the supply.

By applying basic economic pressure, SSOL avoids heavy-handed price controls or subsidies. It works with the mantra "profits over people," but in a way that incentivizes businesses to reduce costs for essential goods rather than exploit those who need them most. This may sound cynical, but in the broader macro environment, it acknowledges how capitalism actually operates — using market forces to protect people from the worst outcomes of a profit-driven system.