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Trickle-down economics is "wrong" according to the IMF

#48

Quote:There is some merit to your position, I won't deny that. However, we must consider the labor market.


The labor market drives the price based on demand. Those that are demanding labor are the businesses. The supply are the workers.


Here's the problem with the free trade policies like the TPP, the corporations have the ability to look at the entire globe as the labor market. They will choose to go where the price for labor is cheapest. Thus, here in the USA, the demand for labor is low, and the supply of workers is high.


To me, in terms of economics, I always will side with my country first and then my class second. As an American worker, if we are letting capital fly out of our nation to build factories and pay cheaper wages in foreign lands, there must be some correction made for this deflation of wages.


I can understand why people push for a higher floor on terms of an increased minimum wage. Americans can't compete with Asian workers who are getting paid pennies on the dollar.


I bet if we got rid of these corporatist free trade policies, and protect the manufacturing industry here nationally, you'd see wages go up "naturally". But I'm not sure we'll ever get there...
 

Some of that is true. The minimum wage was originally instituted to protect workers being paid a higher wage from losing their jobs to lower wage states. The equivalent would be to impose a global minimum wage, but that would be ruinous to 3rd world workers.


 

There are a lot of problems with the current trade deals, as well as illegal immigration and abuse of worker visas. Both parties are at fault here.


 

The bottom line is that since 2008 we've had far more people needing jobs than jobs. Raising the minimum wage in the US can only acerbate that problem. What we need is an economy that's creating lots of jobs. What we have are politicians using our tax dollars to buy votes and campaign donations.





                                                                          

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Trickle-down economics is "wrong" according to the IMF - by MalabarJag - 06-25-2015, 07:40 PM



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