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See, expanding the pool only in one area can be bad for the providers but expanding it on all fronts is good for everyone. Why? Because you are compensated wit
by mrtksn 3y ago
See, expanding the pool only in one area can be bad for the providers but expanding it on all fronts is good for everyone.
Why? Because you are compensated with money but you can’t consume money - you can benefit by exchanging it for a product or service and the more people are working the cheaper these are.
For example, if a Polish person pushed your salary down by immigrating to UK, another Polish person who is a butcher pushes your cost of eating meat down too. Another one pushes down your health costs or transport costs. When it’s a free market, it automatically balances the economy. When you have too much money but too little people who create the product and services, it causes inflation.
What creates prosperity in a society are working people, not numbers in the bank account going up.
- avmich 3y agoOverall on average, yes. In practice it's hit or miss - if you're in the industry which doesn't have an influx of cheap competition, you net benefit from overall increase of competition, but if you're say a barber and there's a train of barbers from Czechoslovakia, your income suddenly drops and it will take quite a bit of competition in other areas to compensate the drop for you. So in the mean time you could be quite vocal about that price undercutting process.