"the business owner experiences a shortfall in monetary revenue and responds by reducing workers’ wages"
https://trueleft.createaforum.com/questions-debates/re-national-socialists-were-socialists-3223/msg31886/#msg31886
A standard employee contract guarantees a fixed minimum pay per month. This is not open to negotiation until the contract expires and the employee demands renewal of contract.
Any business owner who tried what you describe would get sued.
Contract violations in the form of wage-reduction practices imposed by business owners or producers can be minimized when production and consumption are coordinated through state or community-based planning. Under such arrangements, the structural incentives for wage cuts—arising from uneven or insufficient consumer demand across competing enterprises—are substantially reduced. Producers no longer operate as market actors engaged in competition and marketing; rather, they function as administrators of labor processes and managers of productive assets, with demand pre-assigned through institutional coordination.
In this system, consumption is regulated by state authority rather than by spontaneous market dynamics. Each producer is guaranteed a defined consumer base, as surrounding communities are institutionally obligated to consume goods and services produced according to state determined plans. By stabilizing demand and removing market uncertainty, such coordination limits the transfer of economic risk from capital to labor and weakens the structural conditions that enable wage compression under market-driven systems.
Competitive labor relations among producer organizations—driven by the struggle to secure sufficient consumer demand—result in the exclusion of workers with limited skills from employment, rendering them unemployed. Under the so-called natural laws of the market mechanism, it is inevitably those producers whose goods and services most fully satisfy consumer preferences who capture adequate demand, and such outcomes can only be achieved through workers who are able to endure continuously escalating demands for high-level performance. Workers who are unable to meet these demands are consequently excluded from productive activity.
By contrast, if all acts of production and consumption were planned and regulated, workers with limited capacities would still be able to contribute value, so long as their output remains socially useful and non-harmful. This is because social consumption would be collectively organized and planned to accommodate products resulting from diverse conditions of labor, rather than privileging only those outputs deemed maximally satisfying at the cost of intensified labor exploitation, inaccessible performance standards, and widespread unemployment.
Competitive systems of production and consumption governed by market demand thus generate conditions in which survival disproportionately favors social groups characterized as intelligent, manipulative, and aggressive, rather than those who are sensitive, empathetic, and conscious of the necessity of maintaining accessible forms of life so that the weak—yet non-harmful—can continue to meet social contribution requirements and remain protected from domination. The operation of market laws within social life therefore tends to produce discriminatory relations, whereby groups that succeed according to market criteria dominate and marginalize those who fail to conform to market demands.
Yet failure to meet market requirements does not in itself render an individual or group immoral or harmful. Those who fail within market conditions but continue to act ethically remain fully deserving of citizenship and dignified treatment. Conversely, it is those individuals or groups who succeed in capturing market share while disregarding or demeaning those who fall into hardship and deprivation who ought to be subject to regulation and social sanction.
Moreover, power structures operating within societies governed by market laws tend to be dominated by racial groups perceived as possessing higher cognitive capacities, while those who struggle to improve their skills but continue to behave in non-violent ways are systematically marginalized and exposed to material hardship. Such conditions incentivize dominant and economically successful groups to engage in racial discrimination against groups that are structurally disadvantaged within market competition. This dynamic underlies the emergence of racial discrimination and aggressive, colonial, and predatory forms of social interaction.
Historical evidence of this can be found in apartheid regimes in the United States, Israel, Europe, and former colonial territories. Contemporary manifestations are visible in the racial discrimination and aggressive social relations directed by segments of European populations toward refugees and immigrants from the Global South from 2015 to the present.
It was also for this reason that Hitler chose the principle of a planned economy over a market economy, as a means of shielding German society from domination by capitalists, financiers, and landlords, as well as from conditions of social instability and uncertainty.