You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #11: There is no blanket answer. [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
DefenseLawyer Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-06-10 12:34 PM
Response to Original message
11. There is no blanket answer.
Costs can only be "passed on to the consumer" when the consumer will continue to consume the product at the higher price. Generally speaking most businesses already sell their products for the highest price the market will bear. Thus, in those cases rising labor costs will come from profits rather than being passed on. The cool thing is that higher wages lead to more spending, more demand and ultimately high prices for goods and more profits. That requires taking a long term, big picture look at the economy. Most people in business are only focused on profits next quarter for their own company, not the big picture. So we see companies moving jobs to Mexico in order to immediately see dramatic cuts in labor costs, only to see in the long run higher unemployment and stagnant wages at home means there are fewer consumers who can afford to buy new cars and refrigerators coming back from Mexico.
Printer Friendly | Permalink |  | Top
 

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC