Loading ...We are dealing with a man made artificial economy. There is no invisible hand of capitalism keeping things normal and stable. Its kind of like special interest mob rule of the economy.
Man made artificial winners (borrowers, real estate, auto sales, space and defense) and artificial losers. (savers, farmers, miners, producers, entry level private sector employees)
This abnormal situation will and has been gradually catching up to the master planners. They have no idea what’s wrong, or they know what’s wrong, but it will hurt them to admit it and fix it.
Listen close to what they say. They are BEGGING for wage inflation. And in their small little minds, they think a shortage of labor with drive wages higher, and they don’t understand why 4.25% unemployment is not doing it.
There will NEVER EVER be a shortage of labor, that will drive up labor costs. Labor has to be treated or considered like the cost of public utilities, health insurance or the cost of property taxes. You HAVE to pay what they cost or you don’t get.
The cost of living for a live person, (food fuel & shelter) is like the cost of a new car or house or anything else. You have to pay what it COSTS. (plus a profit) But not these days with labor costs. You can get live labor BELOW cost. Called dumping when it comes to steel from China.
Labor, below cost, for a business, is worse than slavery. Because a slave owner HAD to actually pay the purchasing cost of a slave, AND provide food fuel and shelter cost. Even medical cost. If a slave got sick, I’m sure the owner at least took the slave to a vet or Doctor.
Besides all that, these masses of under paid Americans can’t contribute to Gov’t, or society, and are a burden on fellow Americans. If a small business does not generate enough revenue to pay the COST of his labor, he has to go into a different business, for figure out a way to generate more revenue.
I know a person 73 years old now, that had eight small retail stores since the 1970s. He paid below cost labor. Aka minimum wage in NYC. About $7/hr. I told him, his employees are on food stamps etc, that I’m subsidizing his work force.
His profits went into real estate. The OTHER favored protected sector. Here he is owning about 16 multi family houses, containing about 26 to 30 rental units. If he paid the livable wage, maybe he would have only half of those properties, which is still a good thing. Bottom line he can’t take it all with him, and it will all be left behind. Referred to as inter generational wealth.
Tons of THAT out there. Watch the low paid masses drag the whole system down, into a massive deflation. The “price” or “pay back” time. 🙂