View Full Version : Economics The World Business Model

11-12-2012, 07:12 AM
Corporations are put in place for one reason, to make dispassionate decisions that take into account the bottom line for companies. We have an economy that has record profits yet the employment situation and the growth of the economy as a whole have been flat for over a decade now.

Here is the problem. Corporations look at their workforce and see that they can make more money by paying their workforce less by outsourcing. It only makes sense. Less money spent on production means more money for the corporation. What that overlooks is the fact that the purchasing power of that new workforce is not as much as the purchasing power of their previous workforce in two different ways. Their new workforce is not making as much money plus the previous workforce have to find new employment that often pays less than what they made before.