Argument: Dems focus on increasing wages, creating better consumers
(diff) ←Older revision | Current revision | Newer revision→ (diff)
Mark Pash, CFP with Brad Parker. "Progessive Economic Principles: Creating a quality economy.": "The Second Flaw: Failure to Create Quality Customers
In most competitive business environments, there is a conflict between managing for a profitable business and paying adequate wages to create a quality consumer. Owners want to pay employees as low as possible to increase their profits. This results in the creation of inadequate customers. To compensate for this effect, the government’s domestic spending agenda helps under-paid workers by providing such programs as education, medical, and retirement benefits etc. that they cannot afford to purchase. Perversely, it is usually these same conservative business owners who oppose these benefits! Labor unions, labor laws, minimum wages and labor regulations offer assistance in overcoming this major problem in our world today. However, quality customers can only be created by paying wages high enough to sustain and enhance every worker’s ability to purchase quality goods and services. Therefore, we should develop standards for a quality customer minimum wage instead of the present understanding and application of just a minimum wage.
There is no such thing as a competitive labor market, not with billions of people in poverty and low cost slave labor. These people do not make good customers. This is a major global problem. The challenge is running a business - microeconomics - with a customer base drawn from a fully employed and adequately compensated work force. There should not be any significant competition within any industry based on hourly wages, for the same job within a geographical region. Competition should be based on many other business factors including labor utilization. Competition for labor, based solely on low wages, reduces the number of customers and their ability to buy more goods and services."