Make the Best Quality of Goods Possible at the Lowest Cost Possible, Paying the Highest Wages Possible”Henry Ford
Henry Ford is not someone that I would aspire to often. Ford did some things right, and like many historical figures he was a complex man.
That being said, he understood a core concept of Capitalism, one that many, I’d argue most companies have forgotten.
If you cannot pay your workers enough to afford you products, you will eventually murder your own bottom line.
Searching for jobs of late, I’ve found many that are hiring, despite the pandemic. However, the wages being offered are shall we say misaligned with the geographical location.
I did a quick cost estimation, and it would take most people to live in a studio apartment in Los Angeles alone 22 dollars an hour, if they were to pay for all of their expenses. ( health insurance, rent, car repair savings, savings for retirement ect. )
However, the number of full time 40 hour a week positions paying under that, jobs that require years of experience, and a college degree is staggering, and unfortunately short sighted.
The long term health of the world has long been put aside in the shadow of the nuclear bomb. The decision of business leaders to not pay their worker’s enough, while lining their own pockets, has had a profound impact of the psychy of the american worker.
First off, it has led to a decline of so many non-essential and non-competitive businesses. Millennial Killing X industry is little more than a dog whistle to those businesses that refuse to adapt, and shows how symbiotic “journalism” has become. (a topic for another day).
The younger population has no excess income, and so have begun to shy away from those dalliances that their parents afforded. One of these is the overwhelming number of people who are in my life deciding not to have children.
This is a direct result of not being able to afford them. This is of course a long term problem, a problem that Japan is facing right now, and one that is threatening to hurt their economy and national security.
I could go on, but I will end with a simple query. When the party is over, and all the capital is sucked up into the bank accounts of just a few, where do you get your food cooked, and your shelves stocked? who grows it?
When the last employee is bankrupt who will make your economy run?