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The big reason is that a scumbag company then realizes that there's a lot of money that they're just giving to people. Why do we have to take care of them when
by omegaham 12y ago
The big reason is that a scumbag company then realizes that there's a lot of money that they're just giving to people. Why do we have to take care of them when we can completely fuck them over?
In a company town, the real problem is that the company is simultaneously the authority and trying to make a profit. It's like making ExxonMobil an environmental protection agency; there's a conflict of interest. Sure, an inspired CEO or manager can make a difference for a while, but the lure of extra profits will win out eventually.
The way this works is through easy availability of credit and high interest. Since you have your workers in debt to you, you're effectively paying them less because they have to pay off the debt. Now, instead of paying them 8 bucks an hour, you're actually paying them 6 bucks an hour because a quarter of their income is going toward paying off their debts. As debts mount, you're now paying them 4 bucks an hour. You can further speed this process along by overcharging for goods and services. After all, you can do that because you're the only one in the region who offers them.
It doesn't have to be like this, but it's very easy for a manager to say, "Hey, we're leaving forty million dollars on the table here. You like money, right?"