Originally posted by Sicilian Babe:
[QUOTE]Sorry, Don Pope, but I must disagree with your analysis of the US economy and capitalism. Yes, there is always pressure to increase profits. There are only two ways to do it: Cut operating costs or raise prices. You can only raise your price to a certain extent before people will no longer realize a value, which will mean a decrease in sales (bad). This means cutting costs, which is why the US has moved away from manufacturing and is outsourcing more and more of what was once made here.
But in a capitalist economy Corporate companies dont make their money from sales. They make it from how they pay their minimum wage workers. Even if value went down their still not losing money because of how they pay their minimum wage workers.
Yes, there was a fairly recent defeat of a raise in the minimum wage; however, much of the pressure to do so came from the small business community. Since they run on the slimmest profit margin, they were terrified of an increase in wages.
The people who run their own business's (Middle class people etc.) Are just a step up the latter from the minimum wage workers. Things are better but they too are still getting screwed by the people on the next step up of the latter. (Upper Class)
While there will ALWAYS be a poor working class, I agree with PL that, in order for companies to sell products, they need customers with money. And while many immigrants do hold the lower paid jobs, that's just the way it works. Immigrants come here, do the jobs that we no longer want or have become too skilled for, and then they educate their children so that they don't hold those jobs either. That's what my grandparents did, anyway, and the grandparents of most of the people I know.
That's how this country was built. That's how the skyscrapers of Manhattan were built, that's how the railroad was laid, that's how the pretty much everything was made. So far, it's worked for us.
Yes but where do the customers get their money? It all stems to the birth of capitalism with the slave trade. The "Triangular Trade" Money just didn't appear on trees. Your right they did use the immigrants to build skyscrapers and railroads etc. Because they could pay them LESS than the average american. They exploited them. That way they would profit.
PS Where are you buying $150 jeans? Mine cost thirty bucks.
The point I was trying to come across is that the jeans people are buying can be made for less than $10. (Which is salary for workers and manufacturing and shipping costs COMBINED. Thats's where the money is made for the companies.)
