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Higher labour costs just push business overseas. Is this not true?

• smsm42 14y ago
  For Costco, probably not - I won't drive as far as Mexico for some cheaper eggs :)
• aneth4 14y ago
  To China, where there is a rapidly increasing minimum wage. The Chinese understand income distribution will naturally fall extremely toward the powerful, and the powerless will make too little money to create a middle class. Raising the minimum wage distributes income to low income people who spend all their money and contribute to the consumer economy.
  • Volpe 14y ago
    Are you really saying there is not a middle class in china?
    • Spooky23 14y ago
      Proportionally, the middle class in China is small, but growing.
    • aneth4 14y ago
      I did not say that at all. There is a rapidly growing middle class in China.
• tsotha 14y ago
  Retailing doesn't follow the same logic as manufacturing since the jobs really aren't mobile. But things that can be automated will be automated. Also, artificially high labor costs shut out younger and less employable people. If I have to pay $15 anyway, I never need to take the chance on someone who's run afoul of the law or high school dropouts. People who get a slow start in life are going to have that much more difficulty.