Originally Posted by steve davis
What do you mean "evil buisiness owners"? I hope I am completely mis-understanding you. As a buisiness owner, I certainly don't think I am evil for employing people, trying to pay them as much as I can, and make a profit. While producing quality services to my clients.
Sorry tongue in cheek, the "Left" sees businesses and "Wall street" as the enemy. I see them as the Lifeblood of our economy.
As to your second part about paying employees as much as possible......I'll take you at your word
IMO, the "Normal" business cycle works like this.
High unemployment, weak businesses go bankrupt, wages fall;
Business inventories fall over several months;
Businesses start to replenish inventories with CHEAPER labor, and more spending by these new workers starts the cycle expanding;
Business OWNERS ( stockholders) and top managers, start to make good profits start to expand by hiring more CHEAP labor;
PROFITS skyrocket, and businesses are "forced" to pay more for labor as we reach full employment;
LABOR costs escalate as businesses attempt to keep good workers, and PROFITS peak and then drop;
At this point business normally over expands and inventories grow far in excess of demand. Management starts will small layoffs and product sales.
Sales can't keep up with costs and those inventories won't go away. No need for workers so unemployment rises.
IMO, businesses pay what they are FORCED to pay for labor. A business is there to make Capital, not for altruistic purposes. If you chooses to pay much more for labor than another worker would charge you, then you are a nice guy.... and probably a small business.
Large businesses MUST try to keep costs low. The business, and ultimately the Shareholders must be the main concern of management.
Labor( the workforce) is an expense that rises and falls as the economy expands and contracts!
PS What we have right now is NOT NORMAL! The huge influx of Illegals ( willing to work for very cheap wages ), are holding down the cost of low end labor.
If low end wage inflation does not take place, then the next higher rung of workers can't demand higher wages either!
IMO, this is the main reason that Congress acted to raise the "Minimum Wage" in the middle of the business cycle. There should have been no need for that, BUT management and shareholders were reaping huge rewards and were not FORCED to pay more for labor because there is no shortage!