When you seek elsewhere for the lowest bidder, you discount the worth of those nearby. It leads to the impoverishment of everyone.
One of the things Henry Ford did years ago was pay a premium wage to those who worked in his factories. This was wise for several reasons. Among them
- he could choose to hire the best from the many applicants
- he enjoyed low turnover rates
- his workers could afford to buy the produce of his factories.
At the other end of the scale, Wal-Mart is noted for its global supply chain and for paying wages that lead many employees to qualify for public assistance. (It does have the advantage of forcing them to shop at Wal-Mart, where the prices are low.) The social cost is enormous, in terms of the lower level of economic activity nearby and the increase in public services needed.
One of the things Henry Ford did years ago was pay a premium wage to those who worked in his factories. This was wise for several reasons. Among them
- he could choose to hire the best from the many applicants
- he enjoyed low turnover rates
- his workers could afford to buy the produce of his factories.
At the other end of the scale, Wal-Mart is noted for its global supply chain and for paying wages that lead many employees to qualify for public assistance. (It does have the advantage of forcing them to shop at Wal-Mart, where the prices are low.) The social cost is enormous, in terms of the lower level of economic activity nearby and the increase in public services needed.
