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#3 | Posted by snoofy at 2024-04-12 04:56 PM
Capital is free to roam while Labor is held captive by national boundaries.
If the Labor "prices itself out of the market" by demanding (and receiving, often with the government's help) wages and benefits well in excess of its productivity ($/#widgets, $/work/hr), then $$ will find a way to shrink, or simply leave.
kmph.com - Fast food workers blindsided by sudden closure of Fosters Freeze in Lemoore - April 2, 2024
|------- New $20 minimum wage for fast food workers in California set to start on Monday.
"We had gotten a text in the group chat that we were shutting down, and I completely thought it was an April Fools joke," said former employee ...
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www.latimes.com - 99 Cents Only to close all 371 stores and wind down its business -
|------- Rising wages, inflation ... have reduced profits for retailers in a deep-discount sector where margins are already extremely low. 99 Cents Only, with its large base of California stores, has been under particular wage pressure, he said.
... in 2008 when, faced with fast-rising inflation, soaring food and fuel prices, and a higher minimum wage, 99 Cents Only announced that it was straying from its long-standing price strategy. ...
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www.usatoday.com - Fast food chains, workers are bracing for California's minimum wage increase: Chains such as Chipotle and McDonald's said they plan to raise menu prices... - Mar 31, 2024
|------- Fast food industry says expect increased costs, layoffs
... the restaurant industry fear that operating hours will reduce, prices will increase and jobs will be cut as employers deal with new labor costs.
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There are reasons why US unemployment is highest in California and why it's one of the few states losing jobs in 2023.
First Law of Capital : Capital goes where it's welcome and stays and multiplies where it's respected and well treated.
Anyone who's taken Econ101 would understand that. But, according to Suze Orman, about 95% of people in the U.S. are financially / economically illiterate... while thinking they are getting financially "educated" by newspapers' selective opinion articles, and this and many other websites are a daily proof of it.
www.forbes.com - Facts And Opinions: Half Of Americans Don't Know The Difference - March 17, 2024
#3 | Posted by snoofy at 2024-04-12 04:56 PM
Capital has more rights than people.
That was true even before Adam Smith - despite whatever "rights" the government is trying to bestow on labor (including unions) and whatever malarkey Karl Marx and his followers / plagiarist frauds like Thomas Piketty have been cooking up since.
Maybe instead of repeatedly trying and failing to change the "laws of capital," the reasonable governments/leadership should stop catering to economic illiterates and stopping economically stupid laws and populist slogans ("living wage," "fight for $15...$20"...) while actually hurting people they are claiming to help. Some states introduced Economics and Finance education classes in middle and high schools.
NB: First Law of Capital : Capital goes where it's welcome and stays and multiplies where it's respected and well treated.
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