With corporations paying more for labour, they start looking for cheaper labour costs. They look for jurisdictions where there is a greater supply of labour an

With corporations paying more for labour, they start looking for cheaper labour costs. They look for jurisdictions where there is a greater supply of labour and lower labour standards. This reduces the negotiating power of labour in regions with higher taxation, resulting in the stagnation or reduction of wages. In turn, this results in lower tax revenues which results in higher taxation or cuts to government spending. Whether this is good or bad is a matter of perspective. Some people are all for lower government spending (sometimes for justifiable reasons) and labour in the lower tax jurisdictions may benefit. What doesn't change is the balance of power: the wealthy will virtually always benefit it. The people at the bottom have very little autonomy since they have to roll with the punches to simply survive.