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"The solution is make the economy competitive for labour, by encouraging growth and skills. They will treat you well then, regardless the laws." That doesn't a
by RobertoG 10y ago
"The solution is make the economy competitive for labour, by encouraging growth and skills. They will treat you well then, regardless the laws."
That doesn't agree with basic economics.
At the end of the day, we are talking about a market. What determine how you are treated is supply and demand.
If there is scarcity of skilled labour, skilled labour will be treated and paid well and unskilled labour bad.
If there is general scarcity of labour, skilled and not skilled, that will be the moment to open the borders and leave immigrants come or start "structural reforms" that allow to get more job from the current workforce.
If, due to politic reasons, that it's not possible, with an expensive workforce, necessarily, profit will go down. If profit goes down, investment will go down. If investment goes down, unemployment goes up and balance is restored with a recession or even a depression.
- UK-AL 10y agoYou forget there is a division of labour. There is no lump of skilled labour. You can have tons of skilled labour, yet still have shortages in lots of different areas. Combine that with a higher overall demand. Overall it is productivity that drives wages.
- RobertoG 10y ago"Overall it is productivity that drives wages." I have serious doubts about that. how does it work?