X is a worker. He is not happy with his wage. He gathers his fellow workers and together they demand for increased wages. Under pressure, the government says alright. The minimum wage is increased. A lot.
Y is X's cousin. She is unemployed. She's been hoping, after she finishes his SMP she could find a job to help her family. She wants to work in a garment manufacturing in her village, like her cousin X - even if she is paid below the minimum wage.
Now, thanks to X's demand, the minimum wage has increased - significantly even. All X's fellow workers are happy, too.
But Y and her fellow unemployed friends suffer. No business dares to hire and pay them below the now too high minimum wage. Y insisted, it's OK, she's willing to accept lower wage. "Please, you can even put me on weekly contract - not permanent". But the businessman said outsourcing and sub-contracting are illegal, too.
It's an old truth - raise wages, labour gets more expensive, unemployment rises.
ReplyDeleteYet perhaps it isn't a truth. Perhaps Ford was right. Raise wages, increase workers' purchasing power and create employment.
blogwalking, thnks for approve this coment :D
ReplyDeletehappy blogger
blogwalking... nice post :)
ReplyDelete