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- #81
I'm still not clear on why millions of jobs can be shipped to China without compensating US labor.If I'm a major shareholder in a large corporation that lays off thousands of US workers and moves to China, doesn't my gain come at the expense of thousands of productive American workers?
No, your gain comes due to increased productivity and therefore a higher profit margin for the company in which you are an owner. Are you suggesting American companies should be run intentionally inefficient? How is that going to work out in the absence of an isolated economy forbidden to trade internationally?
Besides, when the company in which you are a shareholder increases productivity, you earn a greater return, allowing you to either buy more goods and services, save more money, or make more investments, all of which are job creating actions.
German corporations were prevented from moving to China by German unions with voting members sitting on their boards. Those same German corporations seem to be competing efficiently in the global marketplace today.
If labor is prior to and independent of capital and deserving of much greater consideration, why have most of US productivity gains over the last thirty years gone primarily to investors?