DesideriScuri -> RE: Minimum wage in america (12/17/2013 6:08:30 AM)
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ORIGINAL: Dvr22999874 Is/was that the unions fault ? Or could it possibly be the greed of the companies for higher profits (gods forbid) at the expense of jobs and industry in their own country ? Business's search for profits includes finding cost savings in labor. That they can find profits in shipping labor across the world, and shipping it back here, is amazing. Then again, if they are paying to have the raw inputs shipped here anyway, the shipping portion may be a wash. Business does not exist to put people to work. Business does exist to make profits. Is there anything necessarily wrong with that? Isn't profit the incentive for an entrepreneur? Business has to have a Market, though. I could go outside and find a way to package snow, at least at the moment (Disclaimer: by "snow," I am talking about frozen precipitation). I can only charge what the Market will bear for my packaged snow, though. I can set my business up to rake in profits, and I can employ as many people as I find it necessary to fill the sales of my product. But, if there is no Market for my product, there will be no employment, nor will there be any profit. The goal of profits makes it entirely necessary that there be a Marketable good or service, doesn't it? The cost of a good or service has to be low enough for the business to charge a price the Market is willing to pay. If there is enough competition, there will be a fight for ever lower Market prices to gain more sales. That puts pressure on business to reduce costs, including labor costs. Now, wages will be set at a rate high enough to attract enough qualified employees for the business. If a business can't get enough talent at $X, it will have to raise X higher to attract those employees. The more qualified applicants, the lower X can be. The lower the standards for qualification, the more people will be qualified for that job, and the lower X will be. As I have noted, wage offers at McD's increased as the unemployment rate was dropping and it became more difficult for McD's to attract enough applicants to fill positions. Wages aren't that high anymore, but the number of applicants is, presumably, much greater, too.
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