this post was submitted on 14 Sep 2023
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What kind of competition though? Competing over how little I pay my workers might temporarily boost the standard of living in my own country if I offshore labor, but it seems to turn the standard of living into a ponzi scheme. Where one needs to continually find a cheaper source of labor to maintain the quality of life.
Employers compete for labourers, so they have to raise wages to attract employers in tight labour markets. Offshoring has been going on for decades but it’s slowing down as developing countries are becoming more wealthy (ie: China)
Right now the UAW is going on strike for those higher wages. CEO of Ford says those wages will bankrupt them. Is he telling the truth?
Not to mention that the whole idea behind the Fed raising interest rates and "cooling off the economy" is to raise unemployment, lower employee bargaining power, and therefore keep wages low.