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"Truckers are not being paid more because if they were, the rate-of-profit in that industry would not be sustainable anymore. But raising prices for logistics i
by dahdum 8y ago
"Truckers are not being paid more because if they were, the rate-of-profit in that industry would not be sustainable anymore. But raising prices for logistics is not really an option for that industry, because as soon as you do that, other factors start to depress demand."
I don't fully understand this, even if the rate-of-profit were sky high and could support higher wages, there is no incentive to do so without a tight labor market.
Once the labor market is tight enough wages are forced up. It's then up to the business to eat that cost or pass it along immediately. If overall logistics demand shrinks due to the higher cost, wages will still remain up unless the labor market shifts.