Quote:
Originally Posted by Emil
I think so. 100s of people are standing in line applying for a single McD-job.
If wages could go down companies would be able to hire more people and even increase their profits because of the extra workers. Less people would have to get support from the government. And because of people in general making less money food prices will also go down. If people think they get paid too little then just dont take the job.
More companies would also have people work onshore that sending all the work needed to China, India...
Isn't it really that simple?
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Yes and no. In a perfect world that is how it works. However, we don't live in a perfect world.. Say someone takes a job for $3 per hour. You can't live on $3 per hour. There might be exceptions to the rule, but the average person cannot support themselves on $3 per hour. So they will still likely be getting food stamps, possibly housing assistance, welfare, babysitting assistance etc. so they aren't really out of the system, they end up getting moved to a different part of the system.
The only way for it to really work and people having a decent life at that wage is if prices drop quickly and substantially and that is likely not going to happen.