the other day,i participated in an long conversation about these topics.here is what i told them....# raising minimum wages does not mean extra money in the pocket of the workers.a good analogy is someone on ssi .every year the u.s government raises their checks to adjust for inflation.as soon as the percentage is announced,prices for essential goods jump by that and an extra percentage.so,overall,the effect stays negative.we over the last couple of decades have raised the wages several times.and yet,the effect for workers has been negative.
# 2 outsourcing.outsourcing is sending jobs overseas.the excuse used is it is cheaper.but,this in fact is an illusion.and wages are not the only reason why a company would do this.there are many factors.one ,of course is wages.you can hire people overseas for a lot less.but,with import taxes,fuel cost,and the risk of a horrible accident.this is actually false.in the end it will cost more. another reason.and one of the most selfish,to avoid environmental laws.in the U.S we have laws to protect the environment from a company realizing tons of toxic wast into our streams and air.overseas,very few nations have these laws.there is an American company in Mexico ,just a couple of miles from the u.s. border,that has been realizing toxins into the environment.so much so that the near by town is considered toxic.people get sick.but,hey ,its ok.but,sooner or later,the people get tired of this pollution.and the government,like china,India.makes laws to govern this.
# 3 and this is by far the worst.....they move there to avoid worker safety laws.you can run a sweat shop,or work your workers for 72 hrs,locked in where they can not leave.or work them and cheat them on overtime.this type became clear with the apple circus.and with the factory collapse in Bangladeshi.but,this also can end up hurting these companies.when people find out this well known company did this,some refuse to buy their product.and the company suffers.
but here is my view... a company that outsources is helping destroy the country that made them.fewer jobs mean a smaller tax base.this translates into a smaller military,less money for schools,hospitals,and fire,police.we have had several-jobless recoveries.that has lead to a growing unemployment problem in the double digits.this has lead to a section of the American population that lives like they are in a third worlds society.the old barons re-invested in America.they saw it as their civic duty.today's barons,have no allegiance to America.the old barons paid taxes in the 75% rate,they did not complain.today they belly ache over everything.i see these companies and wall street as being anti America.
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