Breaking Free from the Chains of Low Wages and Financial Control
Written by Emma Agupusi
Let’s talk about something that affects almost all of us—the Iron Law of Wages. Sounds ominous, doesn’t it? Well, that’s because it kind of is. The Iron Law of Wages is an economic theory that basically says wages will always tend towards the minimum amount necessary to keep a worker alive and functioning—you know, so they can show up to work the next day, just to keep the system running.
Governments and employers are like that clingy ex who won’t let you leave. They do everything in their power to make sure you stay within their financial control, and the tools they use are simple yet powerful: low wages and inducement. Let’s break it down.
The Government and Employers: Masters of Financial Puppetry
Governments and employers have a vested interest in keeping people right where they want them. Why? Because a financially dependent workforce is easily controlled. The less wiggle room you have, the more likely you are to accept the terms handed down to you, and that’s what keeps the wheels of the system spinning.
Low Wages: The Ultimate Leash
Ever wonder why wages seem to barely cover the essentials? That’s not an accident. It’s called inducement, a fancy way of saying they give you just enough to survive but not enough to thrive. Employers love it because it keeps you from venturing out to start your own business, learning new skills, or even moving to a better job. It’s like dangling a carrot just out of reach. The wage stays low, so your ambition stays even lower.
Governments, meanwhile, often keep this system intact because it stabilises the economy. They’ll talk a big game about wage increases and better working conditions, but when push comes to shove, they don’t want mass financial independence. Who will pay the taxes to keep the machine running? Exactly.
The Inducement Game
Now, let’s talk about inducement. Employers might toss you a bonus, a raise, or those coveted free bagels on Friday mornings. These perks? They’re designed to make you think, “Hey, it’s not so bad!” But don’t be fooled. Inducement is a psychological game to make you accept your financial chains without question.
You see it in government policies too. Ever notice how social programmes often do just enough to keep you afloat but never really help you break free? The assistance is helpful, sure, but they’re banking on the fact that you’ll remain in the same financial loop for years. As long as you’re dependent on that safety net, you’re not going anywhere.
How to Break Free: The Path to Financial Independence
Now, here’s the million-dollar question: How do you break out of this system? How do you snap the leash of low wages and avoid the lure of inducement? Well, the good news is that it’s possible, but it takes some effort. Let’s get into it.
1. Invest in Yourself Want to make sure that you never rely on low wages again? Invest in yourself. Whether it’s gaining new skills, learning a trade, or picking up a side hustle, making yourself indispensable means you can command higher wages. Employers will pay for talent, and the more versatile you are, the harder it is for them to keep you at the bottom.
2. Budget Like a Boss Here’s the thing: breaking free from financial control starts with controlling your own money. You need to make sure every dollar is working for you, not against you. Save, invest, and build an emergency fund. The more financial independence you have, the less you’ll need to rely on that next paycheck.
3. Create Multiple Streams of Income Relying on a single paycheck is like walking a financial tightrope without a net. If you want to break free from the Iron Law of Wages, you need more than one source of income. This could mean starting a side business, investing in stocks, or even creating passive income streams like rental properties or royalties. The more diverse your income, the less power employers and the government have over you.
4. Say No to Inducement Remember those bagels? Yeah, they’re not worth it. Avoid falling for the little perks that employers use to keep you content. You’re worth more than a free lunch or an “Employee of the Month” parking spot. Focus on your financial goals, and don’t let temporary rewards distract you from long-term independence.
5. Financial Education Is Key If you don’t understand how money works, you’ll always be a slave to it. Take the time to learn about budgeting, investing, and wealth-building strategies. You don’t need to become a financial guru, but having a solid foundation will give you the confidence to make informed decisions about your money.
Conclusion: Break the Iron Law The Iron Law of Wages is real, but it doesn’t have to rule your life. Both employers and governments rely on low wages and inducement to keep people financially dependent, but you don’t have to play by their rules. By investing in yourself, budgeting wisely, diversifying your income, and resisting inducement, you can break free from the system and start your journey towards true financial independence. So go ahead and take control of your financial future. After all, those peanuts aren’t worth your freedom!