[SR2Z]

No. Prices are not arbitrary; they're determined by market forces. I don't really agree with the idea that the minimum wage should be intended to support an adult (I think our welfare systems should be reformed to eliminate cliffs), but if you set it to the average price of a bunch of stuff in a region it's gonna be an actual number.

You can change the set of stuff, but it's much harder to cheat if you actually have to say what a living wage should be spent on.

[nearbuy]

I'm not doubting that we can choose a rate for the living wage.

I'm asking about the sentence I quoted. What makes the living wage the "true cost" of labor? Why consider it to be a cost that private industry should rightfully pay, and if they don't, they're "externalising" it to the government?

By the same logic, isn't nearly all government spending just externalized costs? When the government pays for roads or police, are these also externalized costs that private industry should pay for?

It sounds like a minarchist viewpoint, where government spending is kept to a minimum and services are privatized.