Quote:
Originally posted by Sidd Finch
So what? If the product of a business enterprise is not sufficiently valuable that the owner can afford to pay people enough to create that product, then the business is not worth pursuing.
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That's not a valid criticism. The value of the product is market driven, while the cost of labor is statutory. The business owner is fucked because, although he could profit if wages fluctuated with market forces, they don't. While the value of his product can fluctuate terrifically, and the cost of raw materials used to make the product will follow suit, his wage costs remain high, by law.
Look at GM. But for the cost of employee health care, the company would be fairly sound (or in much better straits).
