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Not necessarily true. Look at Wal-Mart, which out-competes local businesses offering better salaries by cutting labor costs to the bone.
by TheBeardKing 8y ago
Not necessarily true. Look at Wal-Mart, which out-competes local businesses offering better salaries by cutting labor costs to the bone.
- harryh 8y agoMaaaaaaaaayyyyybbbbbeeee. Empirical studies of this sort of effect are mixed at best. It's telling that Sander's proposed bill would only require "large employers" to pay up here. If local businesses were all paying higher salaries already they wouldn't need this exemption in the first place.
- nerfhammer 8y ago> better salaries by cutting labor costs Wait, what?
- lvh 8y agoYou misparsed that sentence. The small companies offer better salaries, the large company cuts labor costs, by cutting labor costs they can compete on price, by competing on price they win market share, meaning small companies go out of business.