Sorry, but it's not a 'law of capitalism' that you pay people as little as possible — it's an excuse
One reason U.S. economic growth is still weak is that average American consumers are still strapped.
Consumers account for ~70% of the spending in our economy, so when they're hurting, we're all hurting.
The reason average consumers are strapped is that, for the past 35 years, we have increasingly told ourselves that the only thing companies are supposed to do is "maximize profit." We have forgotten that great companies can serve other constituencies in addition to shareholders — namely, customers and employees. We have come to treat employees not as dedicated, hard-working teammates who create value, but as "costs" to be minimized.
One result of this "profit maximization" obsession is that our big companies now have the highest profit margins as a percent of our economy in history:
Read more: http://www.businessinsider.com/companies-need-to-pay-people-more-2015-3#ixzz3V8gZ9NSK
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From the link... I don't see how Obama's push for more jobs to Asia will fix this trend.
It is no mystery why America's senior managers and owners describe the decision to pay employees as little as possible as a "law of capitalism." Because this masks the fact that they are making a selfish choice.
But that's exactly what they're doing.
If we want to get our economy humming again, we need to remember that the economy is an ecosystem and that healthy ecosystems are balanced. We need to encourage our companies to maximize value, not profit. And we need to encourage great companies and managers to serve three important constituencies — customers, owners, and employees — instead of just one.
the coupling of our current tax policies with our incomprehensibly outdated notions of what constitutes free market competition in growing fields vs. indispensable infrastructure which is directly managed by government institutions (non profit, high wage jobs).
it all comes back to people not being able to make sense.
if you have low taxes for wealthy people, then they may invest and develop and whatnot....that's not a problem. However if you have low taxes for wealthy people who are in fields that are no longer developing and have become monopolies THEN what you wind up with is concentrated economic power with no direct competition. hmmm..."concentrated economic power with no direct competition"...does that sound like a government to you? or a corporation? or either? or both?....thus you have fascism.
if the u.s. was a real country it would have institutions similar to the post office in many different fields from housing to medicine to maybe agriculture and telecommunications. but the u.s. is not a real country, it is a post-colonial entity dominated by major corporations located both outside and inside it's borders who seek the continuation of their own power through their exploits.
next question?
