Globalization causes wage deflation. Not because you and I shop at Walmart. You and other Walmart haters can spend your money at Ralphs and I will keep my extra $1800/year in my pocket. Wage deflation at the lower end of the labor market happens regardless. The problem is that we have too many unskilled workers.
[quote=CA renter][quote=jimmyle]I never shop Vons and Ralphs again. I either shop at Asian Supermarkets, Costco or Walmart. I usually save about 20 to 25% ($150/month) by not shopping at Vons and Ralphs.
Why should I spend $150 extra monthly to help unionized workers at Vons and Ralphs to bag grocery, stock the shelves or clean the floor when they can hire people to do the same things for half the cost? The same thing is happening at unionized GM and Chrysler, why should tax payers giving the two companies more than $50 bil so uneducated workers can make $30/hour in wages + $35/hour in benefits? Can you believe benefits cost more than the salary? Mine is about 35% of my salary and I am happy.[/quote]
Why should you support union shops instead of Wal-Mart?
Because that $150/month you save today may end up costing you $300/month in wages a few years from now.
Wage deflation in this globalized world moves from the lowest tier to the highest tier. When you cheer on wage deflation for the supermarket clerks, just know that your job may be next. Everyone’s job can be outsourced to cheaper labor. From CEOs on down, **everyone** will be affected.[/quote]
