> It's that thing Ford showed in its early days: paying workers extra so they can buy the cars they produce yields more economic activity for the benefit of everyone -- they also bought fridges and what not.
You can only raise salaries so high; eventually you'll reach a point where the company isn't profitable anymore. Then you either have to keep salaries at a lower rate, or raise prices to the consumer (and that's already at the point where the company makes no profit). Between the employees, company (or owner or stockholders) and consumers, someone has to make a sacrifice.
You can only raise salaries so high; eventually you'll reach a point where the company isn't profitable anymore. Then you either have to keep salaries at a lower rate, or raise prices to the consumer (and that's already at the point where the company makes no profit). Between the employees, company (or owner or stockholders) and consumers, someone has to make a sacrifice.