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What is wrong with a race to the bottom? Less salary means more profit for businesses and/or cheaper products
by witty_username 10y ago
What is wrong with a race to the bottom? Less salary means more profit for businesses and/or cheaper products
- GFK_of_xmaspast 10y agoI sell my labor in exchange for money, and so it's in my interest for wages to be as high as possible, if not higher.
- witty_username 10y agoSure, it's in your interest for your wages to be as high as possible, but does this maximize overall welfare? By banning competition, the H-1B person's wage and the employer's profits go down and the product price increases. How much depends on the relative elasticities. Isn't this richer people banning much poorer people (immigrants) from competing with them?
- GFK_of_xmaspast 10y ago> does this maximize overall welfare I'm not a utilitarian.