Don’t try to tell me my wages are sharply increasing either, because they’re not! Nor are my friends, family, or neighbors.
In: 113
Basically, the Wes is more and more dependent from China (and others but let’s assume it’s only China for simplicity). Everything we use is made in China. And due to Chinese people wanting better salaries, and due to China having all the industry that matters, China can make higher prices while companies can’t really go somewhere else.
The western companies (which basically outsource all the work from China) see their expenses go up. As a reaction to it, instead of actually losing money, they simply shrink the wages in the west and at the same time sell products in the west for higher and higher prices, overcompensating such losses.
Due to the fact that prices are higher, companies can even earn more by raising the price another bit, that bit of extra price is not gonna change the big equation, so it’s absurdly possible to make more money out of a situation where you should make less. And because all the companies are competing on the stock market, it’s far better to play this game than to lose a bit of appeal and have your stock holders move away from you.
It’s really fucked up.
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