Bear Ribs
Well-known member
Not necessarily, their reasoning is brutal but sound. Wages can in fact be squeezed down, I noticed a fast-food joint near my home that was offering 13.50/hr two months ago offering 9.00/hr for the same job now. We had a brief period where wages were unusually high but it's over now.WTF, is this real, what are these pieces of shit!
Do they realize that their employees will just look for better jobs and ultimately the costs will have to be passed to their customers or taken out of their bonuses?
This tends to be a weird case of the Prisoner's Dilemma. It's better for businesses if they offer higher wages because then people have the money to buy more product which increases their revenue. However each business has an incentive to drop their own wages to reduce cost, and gains a significant advantage if the other business pays more wages (after all, the other business's employees may buy their product), so ultimately they all squeeze wages as much as possible and get a bad end where people can't afford as much product and everybody's revenue drops.