The Trucking Industry Needs More Drivers. Maybe It Needs to Pay More. - NYTimes: This article was good overall, but this last paragraph tells me Neil Irwin does not understand how capitalism works: “Executives may bemoan higher pay for workers because it could cut profit margins. But after a generation in which the median American household has seen flat to declining inflation-adjusted income, wage increases are a welcome corrective. When workers begin to have more leverage in salary negotiations, it is a sign of an improving economy, not a liability that businesses should be complaining about.” While greater worker bargaining power is a sign of an improving economy, it is also a problem for companies precisely because unless they can raise their prices, their profits will take a hit. This is the central contradiction of a capitalist economy. There is always a tension between corporations’ need for profits and for customers. Lower wages mean higher profits but not if the workers (as consumers) can’t buy the end product.
Posted on: Fri, 15 Aug 2014 01:58:56 +0000
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