- extreme corporate profits
- better wages
- US jobs
- lower prices
You can’t optimize both for extreme shareholder returns and extreme wealth at the top and also pay first world good wages/living standards and have lower prices. Unfortunately, in this race, shareholder returns is often still the last thing compromised on, it seems.
That's not actually pick three. It's that if you have uncompetitive markets (and therefore high rents/inefficiency), you end up with worse wages, loss of US jobs and high prices. Because then the price companies can charge is no longer tied to their labor cost, so they can cut labor costs without lowering prices.
This is clearly what's happened and needs fixing, but even after that, you still have a trade off between high-paying US jobs and low consumer prices.
But the answer to that one isn't as obvious because it isn't linear. In a competitive market, competition with labor in other countries might cause you to get paid $1000/year less, but lower your cost of living by $2000/year.
> can’t optimize both for extreme shareholder returns and extreme wealth at the top and also pay first world good wages/living standards and have lower prices
Ignoring new entrants, sure. In a competitive market, shareholder returns entice new entrants. Flatten those and you lose that edge.
For many markets, the competition caveat is missing: this is something we can improve with policy. But pushing down profits for labor's sake is a false economy; it leaves the industry less resilient in a global context. Put another way, a solid repeatable business plan is finding a market leader suppressing shareholder returns and exploiting what they're missing from a separate jurisdiction.
I understand that, but if better wages lead to increase costs, it should be a zero sum game in the grand scheme of things. But, at least, you are not dependent on China for making stuff.
lstamour|2 years ago
AnthonyMouse|2 years ago
This is clearly what's happened and needs fixing, but even after that, you still have a trade off between high-paying US jobs and low consumer prices.
But the answer to that one isn't as obvious because it isn't linear. In a competitive market, competition with labor in other countries might cause you to get paid $1000/year less, but lower your cost of living by $2000/year.
JumpCrisscross|2 years ago
Ignoring new entrants, sure. In a competitive market, shareholder returns entice new entrants. Flatten those and you lose that edge.
For many markets, the competition caveat is missing: this is something we can improve with policy. But pushing down profits for labor's sake is a false economy; it leaves the industry less resilient in a global context. Put another way, a solid repeatable business plan is finding a market leader suppressing shareholder returns and exploiting what they're missing from a separate jurisdiction.
skywal_l|2 years ago