occupied
Diamond Member
- Nov 8, 2011
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Add on shipping costs from China and even now we are approaching parity with them, at least as far as US businesses using Chinese labor are concerned, so maybe we are finally coming to that point.The captains of industry have determined that wages are going to stay low until we reach manufacturing cost parity with China.How come everyone makes less and everything costs more?
Remember the Bank Bailouts?
That probably help depreciate the dollar.
Also, considering the upheaval in the job markets, pay may not have risen due to heavier competition for jobs.
If unemployment dips below 5%, pay should start rising again. Upward mobility and competition for skilled labor tends to help increase pay.
That is hard for industries to do if unemployment drops too low.
Also, they may have future problems with China in terms of accessing their labor force and (China's) markets.
If they could do this without restriction, the Industries could force parity but the cost of living would have to drop here as well. They could kill their cash cow(US markets) if they destroy the demand side of the equation through low pay.
They need a consumer base that can buy their goods for profit and playing the Chinese markets against the US would only lead to equality(in all markets including labor) over time. Not good if the US consumer has learned to live without your product.