Politically_Incorrect12
Senior Member
With a little faith, we can move a mountain; with a little help, we can change the world.
Joined: Dec 20, 2010 20:42:13 GMT -5
Posts: 3,763
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Post by Politically_Incorrect12 on Jan 11, 2015 15:36:01 GMT -5
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Politically_Incorrect12
Senior Member
With a little faith, we can move a mountain; with a little help, we can change the world.
Joined: Dec 20, 2010 20:42:13 GMT -5
Posts: 3,763
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Post by Politically_Incorrect12 on Jan 11, 2015 15:38:45 GMT -5
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mroped
Senior Member
Joined: Nov 17, 2014 17:36:56 GMT -5
Posts: 3,453
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Post by mroped on Jan 11, 2015 20:51:59 GMT -5
Hiring went up in the industries with low wages- services, retail. Many of them are not even considered full time so they don't have benefits of any kind. In the overall equation that keeps wages down. In the positions that are typicaly paying higher wages or salaried, companies are hiring "the lowest demand" for the job. Forget about experience or fit for the job! You asked the least amount in pay, you are hired! Also in in many of the positions in the tech field there is an influx of foreign labor force through the work visas program. Why would an informational technology wanna pay $100k to a graduate from MIT or the likes when they can pay $35-40k to a graduate from Bombay University? The job gets done(crapy as it may be) the company gets paid! More profit for the company and that is the end game!
Masive lay-offs in 2007-2008 hapened in the manufacturing. Many of them had years in the companies and were in the higher tier pay scale for laborers.Those workers have been in and out of the work force for years now getting any job that they could. Many of them tried their hand at self employement-contracting businesses- that haven't been always successful. Seasonal business hire for the season starting every year at just about wages because even if they increase prices for their product, like anybody else they want bigger proffits.
And finaly, customers Typicaly wanna pay bottom dollars for what they buy. Quality doesn't seem to mater and again the lowest price wins.
So is pretty simple:low wages=low prices on finished product=more sales=more profits!
Many employers don't realize that if they pay better they might get better workers, better product and compete that way. There is a misconception in regards to the definition of "competition" that defines it as the lowest price. It seems that all Americans forgot about FDRs famous saying: "I'm too poor to buy cheap!"
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usaone
Senior Member
Joined: Dec 21, 2010 9:10:23 GMT -5
Posts: 3,429
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Post by usaone on Jan 15, 2015 10:24:48 GMT -5
Inflation is low because we are seeing no real pay growth.
Companies profits have been through the roof but unfortunately company's have not been allowing employees to share in the prosperity.
The only way to realize growth for middle class is to buy stocks. But many middle class folks don't have enough income to invest. Its a vicious cycle.
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