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How will lowering margins drive wages up?

• WalterBright 9y ago
  Company A employs people and gets 10x on their work with high prices, they have a margin of 9x. B entices them away by offering them 2x their pay, and cuts prices 1x. B now has a margin of 7x, and all the business.
  • akvadrako 9y ago
    Why not just hire the unemployed available workers at the same pay and then have more margin?
    • WalterBright 9y ago
      Then you'd need to lower prices (margins) to attract customers from the other business, and then you aren't getting 10x from the workers. Any way you want to slice it, making 10x off of workers is unstable in that there are market forces acting against it.
      • akvadrako 9y ago
        Sure, margins can go down. I thought the claim was wages could rise.
        • WalterBright 9y ago
          Go back 2 posts and you'll see I showed how the wages rose.
          • akvadrako 9y ago
            Maybe you think you did, but I don't even see a hint of the explanation in your posts.