Current Events — HabitableZone

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Chain reaction
SDAI-Tech1 — (archived)

I agree. It is a self-fulfilling prophecy. It also creates a chain reaction of wage scale reduction in other industries.

The wage-reduction you describe as well as the net dollars shipped out of the country as a result create a chain reaction of salary reduction.

If folks leave construction or service because of low wages, then more bodies are applying for other work in other fields. Employers can lower wages and still find employees.

The biggest exploitation tactic now by "brick and mortar" companies is the hiring of perpetual part time employees. Every department store, retail outlet, electronics shop etcetera are hiring only part-time employees so as to save on up front wages, insurance, health care and other benefits. They sign them to an "at will" employment arrangement and can fire them for any or for no reason at all. Commissioned sales positions are often swept away in the part-time hiring, saving even more bucks. It's not just the companies fault--they often have to do this to compete with a company outsourcing labor and churning out a cheaper product.

The self-fulfilling prophecy you describe creates a chain reaction of lowering wages in other industries. Each type of job that gets "technically outsourced" makes a small cut in the wage scale across the board.

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