Quote:
Originally Posted by ArchmageXin
This thread make me lol. But to be honest, in the last years I had to struggle and fight my way from doing Internship at $12 an hour all the way to the Senior Accountant at a major wall street firm while freelancing for a bunch of smaller firms.
I can tell you you will be surprised how many companies, especially mid (200 employee or less) are not making money, barely surviving because guess what? Their employees aren't even making enough to enjoy their company's products.
Everything in capitalism depend on consumption (making sales) and reducing costs. If one constantly reduce the value of their workers, those workers (or laid off) will make less consumption. A CEO can't eat 50 worker worth of oranges a year, no matter how high his salary is. A grocer I do the books for in exchange for free picks from his stock is fretting his food aren't being sold fast enough, because the local economy is dying a slow death and everyone is cutting back.
So once this vicious circle goes on long enough, the economic impact will be felt even for the mid managers and then the wealthy. Those countries that enjoy an outsourced economy (SK, China) will soon join Japan in the lost lands when their workers are outsourced to Africa, or replaced by robots completely.
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Yeah. This is a problem that in many ways we're having to deal with. Real wages for workers have fallen, so consumer spending goes down. So to compensate...companies law off workers and cut off hours. It's one of those things where it's rational when one company does it, but it becomes economically bad when everybody does it. Because to a company, it's all about acquiring as much cash infusion. When large scale level economies work because of the distribution and movement of money through the system.
Imagine a setup where every company managed to replace the entirety of its work force with robots, yet still was providing services/goods under the assumption that there were still consumers with money left.