How wages and employment are actually determined

If we look at human behavior we can come to the conclusion that people maximize in pursuit of their economic objectives, some may agree and some may disagree. Second would be satisfying. Satisfying means that an individual pursues a goal only until he or she reaches a minimum acceptable or satisfactory level. Rather than strive for the best outcome people who satisfy settle for the outcome that they regard as good enough even if it is not the best they could do.

Many also believe that people’s choices are less rational and consistent. Specifically with the argument that the human brain is too limited to assimilate all the data and to make all the complex calculations that are required to arrive at the best and consistent choices which may be plausible. 

Then the other argument is that of the aspect of preferences. The first is that people’s preferences or tastes are interdependent, what one person or group does has a large influence on the behavior and preferences of others. The second aspect of preferences are not given but are rather shaped by and change with ones economy.

Many claim of the competitive nature of labor markets and the primacy of market forces in determining wages. We here in why did you join the union consider this premise as moot. We would like to point them to the MTA as an example in the  2010 layoffs - how did it come to be? How did the MTA maneuver this way? Why did TWU Local 100 members have to be laid off? Until now we have not heard any coherent answers, we would suggest it is the white collar mismanagement and excesses.