MY GOODNESS WHOM DIDN’T SEE THIS COMING ECON 101: raising wages reduces the employment of people, increases the bankruptcies of small businesses and it also increases inflation and raises prices for everyone faster than wages essentially making everyone poorer! This is very simply the most basic law of supply and demand where increasing wages at any level will decrease the demand for people. If wages continue to rise they will eventually put the entire economy into a recession. This is a lose, lose, situation for everybody. NOBODY WINS. Wages are much toooo high today already, across the board. Proof of this is: The high unemployment rate The outsourcing of jobs out of the country The large number of businesses going bankrupt The continual depression Existing workers are givin more duties instead or hifing more people The pour quality of products made today as so much money goes into the labor there is little left for materials and engineering If any product that costs less than a $1000 breaks it is cheaper to throw it away and buy a new on as the cost of labor to repair it is toooo high The cost of many products is rising out of the reach of average people I could go on forever but you get the idea.
Posted on: Wed, 04 Jun 2014 11:59:00 +0000
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