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Controlling Working Hour Globally for that businesses have been globalized.
I have a shorter version on the Withe House Petition, If interested, please check
Http://wh.gov/lhU1c
As we all know, the umemployment rate has increased throughout the world, so has the gap between the rich and the poor people. There are two possible main factors that should be related to the above problems, or, given their properties, they can be categorized as problems of allocation: (1) Improvement of Technology. (2) Business Administration
The first reason has been awared by the public gradully. I will be explaining the second, business administration (or operation management) more. Management find by dividing a job into parts, employees can do better and quicker. Therefore, whether it is a coffee shop or any other industries, managements design a work process so they can divide jobs into simpler work and they can train their employess more easily. We know it is probably impossible for a person to creat a modern computer from totally nothing, but by separating work into easier pieces, a computer company can train an employee with adequate skills they need with, for instance, half a year or so. A computer company does not have to make a computer from designing an IC. Any complicated task will be split into several easier tasks. As consequence, to a company, most of employees have little or no difference in terms of their quality or skills. Given the condition mentioned above, a company, either a coffee store or a computer company, makes money from exploiting employees' energies and time. Take a chained coffee shop for example, owners or shareholders do not have to earn too much money from a single store, but with hundreds of stores, they make a great amount of money.As single employee does not contribute much, but take a small portion from many people, the profit can be massive. Becuase employees are no much different to employers and the supply of human resources is over demand, workers are lack of bargain power. We should not blame companies or managements for hiring employees with lower and lower salary levels. A firm's objective is to maximize shareholders' profit, so it is very natural for them to cut back their costs as many as possible as long as it is legitimate. When the board of directors asks the CEO to increase profits year by year, reducing costs seems to be the only resort for that it is almost impossible expanding revenues forever. Deducting salaries, laying off, or moving their factories to some countries with lower salary levels become reasonable options to companies. This is also very obvious why some Asian countries now are the main manufacturing factories for the world. Therefore, it may be the whole regulations and circumstances that should be reviewed.
Controlling working time globally
If businesses have globalized, so should the law for business. My suggestion is that the world organization such as the United Nations or WTO can set a regulation to limit the working hour, for example, 6 hours a day, depending on the economic situation. If any company from any country violet the regulation, the country is to be put on more tariff as a punishment, so that the responsibility to monitor if domestic companies follow the rule or not falls on each country. The rule is for companies. As for people, however, there is no need to have a rule. People can work 6 hours in a company and take another 4 or 6-hour job in another company, or they can work at home as a freelancer if they financially need to. The possible advatages for this kind of rule would be:
(1) For the supply of labor force reduces, the salary level will rise.
It is also foreseeable that the price level for all kind of goods will rise, too. However, because costs of goods include raw materials, employees' salaries, and the like, the rise of price level will be smaller than the rise of salary level. Therefore, the real purchase power will increase. It is also expected wealth will flow more evenly and the gap between the rich and the average people will diminish.
(2) The unemployement rate will reduce.
If companies connot fulfill their labor shortage in areas with a lower salary level, they have to seek more labor forces even in an area with a higher salary level.
(3) Consumption and businesses will boost.
Given the above two advantages, people will have more money, and more time to spend their money. The global economy is going to perform better.
Economics tells us it is most efficient if the governments do nothing. Nevertheless, the technology has changed the world. If doing nothing, the resources cannot be allocated the way they should be. Some people will have no job meaning no money to buy resources at all, while some people will have too much money due to the expolitation from the overworked labors. Economics also tells us marginal utility diminishes. An extra dollar for rich people obvious does not have as much utility as it does for a poor. If the society's utility is decreasing, then I don't think the economy is functioning well. We should enjoy the improvment of technology instead of being afraid of losing our job. People should be paid that the salary deserves their time spent on their work no matter we are standing behind the counter or sitting in front of a computer.
I have a shorter version on the Withe House Petition, If interested, please check
Http://wh.gov/lhU1c
As we all know, the umemployment rate has increased throughout the world, so has the gap between the rich and the poor people. There are two possible main factors that should be related to the above problems, or, given their properties, they can be categorized as problems of allocation: (1) Improvement of Technology. (2) Business Administration
The first reason has been awared by the public gradully. I will be explaining the second, business administration (or operation management) more. Management find by dividing a job into parts, employees can do better and quicker. Therefore, whether it is a coffee shop or any other industries, managements design a work process so they can divide jobs into simpler work and they can train their employess more easily. We know it is probably impossible for a person to creat a modern computer from totally nothing, but by separating work into easier pieces, a computer company can train an employee with adequate skills they need with, for instance, half a year or so. A computer company does not have to make a computer from designing an IC. Any complicated task will be split into several easier tasks. As consequence, to a company, most of employees have little or no difference in terms of their quality or skills. Given the condition mentioned above, a company, either a coffee store or a computer company, makes money from exploiting employees' energies and time. Take a chained coffee shop for example, owners or shareholders do not have to earn too much money from a single store, but with hundreds of stores, they make a great amount of money.As single employee does not contribute much, but take a small portion from many people, the profit can be massive. Becuase employees are no much different to employers and the supply of human resources is over demand, workers are lack of bargain power. We should not blame companies or managements for hiring employees with lower and lower salary levels. A firm's objective is to maximize shareholders' profit, so it is very natural for them to cut back their costs as many as possible as long as it is legitimate. When the board of directors asks the CEO to increase profits year by year, reducing costs seems to be the only resort for that it is almost impossible expanding revenues forever. Deducting salaries, laying off, or moving their factories to some countries with lower salary levels become reasonable options to companies. This is also very obvious why some Asian countries now are the main manufacturing factories for the world. Therefore, it may be the whole regulations and circumstances that should be reviewed.
Controlling working time globally
If businesses have globalized, so should the law for business. My suggestion is that the world organization such as the United Nations or WTO can set a regulation to limit the working hour, for example, 6 hours a day, depending on the economic situation. If any company from any country violet the regulation, the country is to be put on more tariff as a punishment, so that the responsibility to monitor if domestic companies follow the rule or not falls on each country. The rule is for companies. As for people, however, there is no need to have a rule. People can work 6 hours in a company and take another 4 or 6-hour job in another company, or they can work at home as a freelancer if they financially need to. The possible advatages for this kind of rule would be:
(1) For the supply of labor force reduces, the salary level will rise.
It is also foreseeable that the price level for all kind of goods will rise, too. However, because costs of goods include raw materials, employees' salaries, and the like, the rise of price level will be smaller than the rise of salary level. Therefore, the real purchase power will increase. It is also expected wealth will flow more evenly and the gap between the rich and the average people will diminish.
(2) The unemployement rate will reduce.
If companies connot fulfill their labor shortage in areas with a lower salary level, they have to seek more labor forces even in an area with a higher salary level.
(3) Consumption and businesses will boost.
Given the above two advantages, people will have more money, and more time to spend their money. The global economy is going to perform better.
Economics tells us it is most efficient if the governments do nothing. Nevertheless, the technology has changed the world. If doing nothing, the resources cannot be allocated the way they should be. Some people will have no job meaning no money to buy resources at all, while some people will have too much money due to the expolitation from the overworked labors. Economics also tells us marginal utility diminishes. An extra dollar for rich people obvious does not have as much utility as it does for a poor. If the society's utility is decreasing, then I don't think the economy is functioning well. We should enjoy the improvment of technology instead of being afraid of losing our job. People should be paid that the salary deserves their time spent on their work no matter we are standing behind the counter or sitting in front of a computer.
