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Again, same coin, different sides. Your scenario is great for a business just starting, but what for a business that is already established? What of the benefits owed to the employees you are releasing?
As I was saying, we are not necessarily talking about releasing employees at all. The same logic applies to, say, a new or newly opened position at a longstanding business.
If employees are promised benefits upon leaving, then switching in new employees may impose additional costs on an employer, thus the savings are not as much.
Not sure what you're saying. Yes, they need to compete, hence using the savings to drive down prices, directly benefiting consumers.
Your missing the point of direct competition from imported sources. They are produced at a much cheaper rate and imported still cheaper than what is produced here. How low do wages need to go to compete with these imports?
As I was saying, we are not necessarily talking about releasing employees at all. The same logic applies to, say, a new or newly opened position at a longstanding business.
If employees are promised benefits upon leaving, then switching in new employees may impose additional costs on an employer, thus the savings are not as much.
If you are not releasing employees, then you may be adding employees. Adding employees cheaper then what you are paying existing employees is fine.
Your missing the point of direct competition from imported sources. They are produced at a much cheaper rate and imported still cheaper than what is produced here. How low do wages need to go to compete with these imports?
Perhaps so low that we should let the industry die. This happens ALL THE TIME.
Non-competitive firms close. They don't bring wages down to $1/hr, they just shut down. This, believe it or not, still benefits consumers, because the competitive importers are offering products at lower prices.
This is also why, for example, tariffs designed to create artificial competition between domestic and foreign companies often hurt consumers.
If you are not releasing employees, then you may be adding employees. Adding employees cheaper then what you are paying existing employees is fine.
What? Why is that better? Just because there is no employee who is reliant on the wage in that situation? What if they are given 6 months notice, is releasing them for a more competitively priced laborer OK then?
Perhaps so low that we should let the industry die. This happens ALL THE TIME.
Non-competitive firms close. They don't bring wages down to $1/hr, they just shut down. This, believe it or not, still benefits consumers, because the competitive importers are offering products at lower prices.
This is also why, for example, tariffs designed to create artificial competition between domestic and foreign companies often hurt consumers.
But now we've gotten off your hypo. along with increasing the unemployment rate.
Your missing the point of direct competition from imported sources. They are produced at a much cheaper rate and imported still cheaper than what is produced here. How low do wages need to go to compete with these imports?
Competition makes us better. We didn't outlaw the automobile and those buggy whip makers found new jobs and made our economy even stronger. The American worker is much more resilient and resourceful than you give them credit for.
What? Why is that better? Just because there is no employee who is reliant on the wage in that situation? What if they are given 6 months notice, is releasing them for a more competitively priced laborer OK then?
Depends on the labor laws of the state, is it a right-to-work state or not? Most farm labor has unions that will work for those fixing to be released. The UFW comes to mind here in CA.
Competition makes us better. We didn't outlaw the automobile and those buggy whip makers found new jobs and made our economy even stronger. The American worker is much more resilient and resourceful than you give them credit for.
While this is true, there are downsides as technology grows, industries due get left to the waste side. I never diminished the American worker, your claim is unwarranted.
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