Boss
Take a Memo:
- Thread starter
- #241
Why would capitalists prefer obsolete methods merely to use inexpensive labor? i believe capitalist may prefer to re-tool to achieve gains from productivity using the latest technologies available.no, but it does provide incentive to lower costs through productivity.simply making labor more expensive could create better paying jobs due to capital investment to improve productivity.
Increasing cost of labor does not increase capital available for investment.
Except, it doesn't.
They lower costs by laying people off and maintain productivity by delegating it to others. You have better paying jobs but fewer of them and more demanding. IF the demand for their product or service warrants increase in productivity they may choose to invest in new technology but this also generally results in fewer jobs, better pay but more technical skill required.
Obsolete methods? ...So you assume the instant a new technology is available, all previous technology is obsolete? Inexpensive labor? You just said we raised the cost of labor.
A capitalist believes in making a profit, it doesn't matter what your silly ass believes. A smart capitalist (which you have no chance of ever being) looks at return on investment (ROI) and if it is to his advantage to "re-tool" he will. You see, when NEW technology first comes out it is generally very expensive. Therefore, it's not always a good idea. Especially when increased productivity is not the issue. Raising labor cost results in the capitalist eliminating jobs and consolidating responsibility to maintain production levels. Raise the cost too much and it results in outsourcing labor to China.