There's been a lot of discussion on theses forums about wages and how they affect the economy. Maybe someone can answer some questions I've had for a long time. If I own a company making a product ,weather it's autos or refrigerators, I have to sell that product for a profit to stay in business. and the consumer has to make a wage that will allow them to afford that product. So in my thinking it's logical to assume the more money a person makes the more of my product they're going to buy increasing demand which in turn requires more workers to make my product. I've always wondered about employers outsourcing jobs. If you outsource most of the jobs whose going to be left in America that can afford to buy anything. Workers in Mexico can't afford my $25,000 car. So does somebody know the MAGIC FORMULA for : How many jobs can you outsource or how low a wage you can pay your employees and still have enough people that can afford you product .
Paying people a living wage across the board would stimulate the economy beyond belief and eliminate unemployment !
The important thing is to maintain full employment, how much we import doesn't matter. Right now we have a demand shortage, we are capable of another 2 trillion of GDP. All we need is a buyer, and the only entity capable of filling that role is the Federal Government, however the GOP is blocking that course of action. So we limp along.
