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("... Most of the owners could obviously afford to pay employees better given the incredible amounts of wealth that the factory owners have accumulated and havi
by crag 13y ago
("... Most of the owners could obviously afford to pay employees better given the incredible amounts of wealth that the factory owners have accumulated and having gone to school with some of their children, I know quite a few factory owners personally. The reason they don't pay more comes down to simply business principles. The objective of a labor intensive business is to drive costs down the lowest possible amount legally. That is what they do.")
That's a fancy way of saying that they are greedy. Which is what "business practice" really is. Pay your workers crap and reap the rewards. Meanwhile the society as a whole hasn't benefited at all (except more low-wage work struggling to live life). But the owners have. Bully for them.
- ericd 13y agoIt's not that simple. If you pay more than the next factory over for the same work, you become uncompetitive with that factory, and you start losing contracts. If that becomes bad enough, that will drive you under. This is why minimum wages are important - to make it so your neighbor also has to pay the better rate as well. This breaks down somewhat when your factory is competing with another factory in another country, unless your factory is much more efficient. Short of world government with universally strong rule of law, there's not an easy solution that I can see.
- kansface 13y agoMoreover, if they did implement a minimum wage, business would just move to the next country that doesn't
- ericd 13y agoYeah, I didn't explain very well, but that's what I meant by needing a world government with a strong rule of law - the minimum wage would need to be implemented across the board, or it just ends up screwing people in the country that implemented it.
- crag 13y agoUnless all countries implemented a minimum wage.