3 ms·
that is just not how microecon works. raising the marginal cost of labor lessens the amount of labor hired. there is no scenario in which it leads to more peop
by whimsicalism 2y ago
that is just not how microecon works.
raising the marginal cost of labor lessens the amount of labor hired. there is no scenario in which it leads to more people working the job. unionized labor did not make it harder to offshore - in fact it accelerated offshoring, automation, and a shift to manufacturing in the South of the country.
having lower costs of goods usually benefits the economy more than more prosperous labor (not necessarily the local economy), although the net welfare increasing thing is context dependent. in competitive markets, vast majority of labor cost decreases are captured by the consumer.