Morality Games
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Re: WIKILEAKS: U.S. Fought To Lower Minimum Wage In Haiti So Hanes And Levis Would St
... America's wealthiest individuals and top financial institutions have trillions in under utilized wealth parked overseas in foreign accounting firms. Trillions that would be much more efficiently utilized by middle class consumers. I feel comfortable with the statement.
Wealth redistribution has its uses, but its efficacy for this type of thing is somewhat limited. In this case, tasking corporations with mandatory wage increases and job creation quotas would be a more effective solution. The former exists as the 'minimum wage' while the latter has never been seriously attempted outside the municipal level. Another (although less desirable) option would be socialize key segments of industry (the European solution).
Increasing wages for anyone below the executive rank is accompanied by all sorts of complications that corporations prefer to avoid, with the result being that pay raises can lag for decades. However, just as grinding your teeth (a harmless action in its own right) causes stress which, over long periods of time can cause considerable damage to your teeth, withholding wealth from the economy also cause complications over long periods of time. Over reliance on debt (public and private), lack of equity, etc.
The basic problem is that after meeting all of their fiscal goals for the quarter (wages delivered, shareholders paid off, distribution expenses taken care of, businesses operations expanded to new territories, etc), corporations prefer to wait for signs of life before choosing to do anything else with the money that is left. This is particularly the case if they are looking at a market whose growth has capped or if it is an aspect of business with which they are unfamiliar. As such, the safest fiscal option is to set excess fiscal profits in a foreign accounting firm where it won't be taxed.
The result is that nothing gets done, nothing gets made, and people turn to welfare to make ends meet.
... America's wealthiest individuals and top financial institutions have trillions in under utilized wealth parked overseas in foreign accounting firms. Trillions that would be much more efficiently utilized by middle class consumers. I feel comfortable with the statement.
Wealth redistribution has its uses, but its efficacy for this type of thing is somewhat limited. In this case, tasking corporations with mandatory wage increases and job creation quotas would be a more effective solution. The former exists as the 'minimum wage' while the latter has never been seriously attempted outside the municipal level. Another (although less desirable) option would be socialize key segments of industry (the European solution).
Increasing wages for anyone below the executive rank is accompanied by all sorts of complications that corporations prefer to avoid, with the result being that pay raises can lag for decades. However, just as grinding your teeth (a harmless action in its own right) causes stress which, over long periods of time can cause considerable damage to your teeth, withholding wealth from the economy also cause complications over long periods of time. Over reliance on debt (public and private), lack of equity, etc.
The basic problem is that after meeting all of their fiscal goals for the quarter (wages delivered, shareholders paid off, distribution expenses taken care of, businesses operations expanded to new territories, etc), corporations prefer to wait for signs of life before choosing to do anything else with the money that is left. This is particularly the case if they are looking at a market whose growth has capped or if it is an aspect of business with which they are unfamiliar. As such, the safest fiscal option is to set excess fiscal profits in a foreign accounting firm where it won't be taxed.
The result is that nothing gets done, nothing gets made, and people turn to welfare to make ends meet.
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