Saturday, July 17, 2010

Low Wages part 29; The next best thing since sliced bread…for business.

While the government continues to provide tax breaks for companies outsourcing jobs and manufacturing, U.S. workers are being forced to compete with lower wages and benefits globally, in turn lowering the standard of living and redefining what it is to be middle class. Even high end products, catering to wealthy consumers, is now getting the Wal-Mart treatment.

Wisconsin State Journal: Leaders of the union representing employees at Wolf Appliance say the company is asking their members to take a deep pay cut or their jobs could be moved out of state. Union business manager Tim Hintze said "they needed a 20 percent reduction in wages and benefits or the jobs would be moved to Kentucky ... They said that due to economic conditions, they needed to lower the cost of the product and to do that, they needed to lower the wages."
This is where we are today, and the global free market place may be here to stay, unless drastic protectionist action is taken. I know, it's a generally vilified solution that defends the economic well being of a sovereign country. Someone tell me why protecting and stabilizing the products and wages of a nation is a bad thing.

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