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

#62

Quote:You really don't get the point that fast food jobs are/were not intended to be a career for most people. I worked in fast food when I was a teenager, mainly to put gas in my truck and have money to do things that I wanted to do. They didn't pay me what I considered "poverty wages" because at the time, I had no debt and really not a lot of responsibility (I was still in high school). It wasn't the first "job" that I had and I personally went from "flipping burgers" to being an assistant manager in a very short period of time. Even then I never wanted it to be a career, so I left the job after gaining some experience and moved on.


My point is, you see many adults that are interviewed when they are protesting for higher pay, and many of them state that they have been doing the job for years with little to no pay increase. I put the blame on them since the job requires very few skills, but does teach some skills that could lead to a better job somewhere else. Perhaps they fail to put any effort into improving their situation?



I get your point, but why is there such a "flight of manufacturing" from the U.S. to other countries? Yes, labor cost is certainly one factor, but it is not THE sole factor. Regulation and taxation has much to do with it as well.


Yeah, there are indeed multiple factors. Cost being the biggest. There is a cost to labor, obviously. And there is a cost to regulations as well as taxes.


The goal of business is to reduce costs as much as possible.


But I ask you a rhetorical question, which cost is the highest? It's labor. In most industries it is labor.


Regulations and taxes, yes. But I'm my opinion, and I think in most economists research, the flight of jobs overseas is based on cutting labor costs first.
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Trickle-down economics is "wrong" according to the IMF - by The_Anchorman - 06-26-2015, 03:53 PM



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