Capitalists don’t care that for many people, wages aren’t high enough to sustain a decent lifestyle, one where you don’t have to worry about how you’ll pay your bills or where you next meal will come from.
They don’t care that low wages reduces purchasing power of consumers.
They don’t care that raising wages would lead to increased consumption and thereby increased revenue for companies.
They don’t care because they solved that problem. They solved it by giving everyone credit.
They don’t have to worry about low purchasing capacity of consumers because as long as everyone has overdraft protection, credit cards, lines of credit, and so on, companies will still be able to sell their products.
Because they don’t care whether the money comes from cash or from borrowed financing. Just as long as they can sell their products.
And as a bonus, not only does credit allow them to sell more, it allows them to pay workers less.
2 replies on “Why capitalists don’t care about low wages”
Kim, could you please comment on how the banks enter into this wage/credit spiral?
They supply the credit.