Being mindful of wages is great, but eventually you have to accept that creating a job at a less than ideal wage is better than not creating any job at all. If the pay is not enough then you’ll get the signal through being unable to hire because workers are taking better paying jobs.
An unintuitive feature of the job market is that creating more low paying jobs actually puts upward pressure on wages. Ideally the low end of the job market should be saturated with job opportunities, which creates a situation where employers have to compete with each other to raise wages to find and retain employees, which means pay goes up for everyone.
So don’t let worries about not being able to pay as much as you’d like get in the way of paying anyone at all. The alternative (less jobs, more outsourcing) is worse in every way.
"Living wage" is an awful term because it intrinsically holds employers responsible for real estate costs, which are strongly correlated with higher pay (read: as employees get paid more, housing costs rise to match it).
$20 an hour is not awful pay when you can rent for $600/mo. So the actual fix is to just build more housing, and it will bring back the viability of all these disappearing jobs.
They sure have a lot of that capital.
For the employee, maybe. For the employer, it depends on how much time/money you have to put into training and what turnover is. Paying non-living wages leads to high(er) turnover because people will leave for anything better.
Money is not unlimited though so “just pay everyone a living wage” isn’t a real solution. If you can’t afford to pay ideal “living wage” (which is an undefined target that keeps moving depending on who you ask) then your options are to either not create the job at all, or outsource the work.
So therefore, creating a job at any wage is better for your economy than not creating the job at all.
"Living wage" in my area is $40/hr. That is just to live, not thrive or gain.
Rent prices have gone insane [1], which in turn have drove up COGS. Since COGS have gone up the real estate investors have raised their prices on rents/housing to make up for the increase. The feedback loop has gone on too long...I am concerned the only option is collapse and for a lot of investors to lose money. This will feedback into the system even more...it will not benefit either the renter or the investor. As they say..."the market can stay irrational longer than you can stay solvent".
I run a very small company that is largely bootstrapped. I fix all my own machines, do my own setup, move my own equipment. Personally, I work on every step from design through packaging (janitor>CEO). There is not enough money to pay a living wage for others...so I end up doing everything myself. 70hr weeks are not uncommon. (I also cook my own meals, fix my own car and bake my own bread...otherwise I would not make it)
If you have not been a renter for the last 10 years you may not have noticed. Building more is not helping since the only things being built are done so they can set them to the new "normal" price. It is to the point where they consider an "affordable home" as $400k (in my area they literally named this development as "Miracle on Britton"). Meanwhile the average renter makes <$40k/year.
I have not been outsourcing more due to this. Just working harder myself...but even so I barely get by. 5 years ago I gave up the hope of ever buying in this area [2], currently I am just working to stay here long enough to take care of family. If I did not have that I would be long gone.
Doing what I can to bring back manufacturing to the area, but I am a small fish working mostly in Opensource Hardware. If the project starts making money again very likely it will be cloned to the point where there will be no way to make profit (already happened once).
[1] https://www.zillow.com/rental-manager/market-trends/coeur-d-... [2] https://www.zillow.com/home-values/136166/coeur-dalene-id/
Making boards for the Smoothieware/Smoothieboard project. [1]
Mostly small SMT stuff on there. 0402, BGA, etc.
The fix is you will just have to buy American and pay higher prices for higher "living wages". There's no way around it besides taxes or tariffs on foreign goods to equalize the wage/price difference (which does have some down sides).
I buy American and western-made products as much as possible, and I pay higher prices (assuming high quality) for those higher wages. If you want low cost, you can't by definition support "living wages".
There's no "oh if only the CEO makes less" way around it either. Labor is simply more expensive in the west and will remain so and you can vote with your wallet, as I do, or you can pay people less than living wages.
China already figured this out, mind you. Their wages have been exploding as the country has developed, and due to their horrible one-child policy they are facing a giant population cliff. They have been pushing very hard to switch their factories from cheap labor to automation, and those dirt-cheap Chinese EVs our Western politicians are working so hard to block in order to keep the horribly outdated Western car manufacturers alive are the direct result of that.
And how many people will be willing to pay a premium when the locally made products are worse quality than foreign products? It's happening right now with Chinese consumer goods (e.g. robotic vacuum cleaners), EVs, etc. Eventually there's a high possibility you won't be able to buy anything in the product category you want.
No clue, but there are millions. Just depends on the product.
Here are two examples. One made in France, the other in America:
[1] https://www.debuyer-usa.com
One of those pans is made in France (western) the other is made here in the US. The quality of the US pans are a bit better which is part of why they command the higher prices. But you can also buy a pan from Wal-Mart for 1/10 or 1/5th the cost. But that's up to you. You can support higher wages or you don't have to if you don't want to.
> And how many people will be willing to pay a premium when the locally made products are worse quality than foreign products?
Why are you assuming the American and locally made products are worse than foreign products? Sometimes they are, sometimes they aren't.
> Eventually there's a high possibility you won't be able to buy anything in the product category you want.
Well for a lot of these we can just do without, but those are the kinds of things you have to figure out if you want "living wages". Wages are higher in the west so we will automate things to keep some prices low/lower and we'll just pay higher costs to support the living wages. Or we won't and then we won't have living wages. You can do things like try to raise the minimum wage or w/e but then you're just making American/western products less competitive with the cheaper foreign products. Then you'll have to implement tariffs and agree with Trump there in order to offset the wage differences.