Comment

Ben Folds/Nick Hornby: From Above

106
Wendell Zurkowitz ((slave to the waffle light))12/08/2010 6:57:42 am PST

re: #105 schnapp

Because labour is less mobile than capital, firms employ less workers rather than provide lower returns to investors.
Do you have an explanation?

Labor is seen as just another commodity to be sourced wherever it is cheapest, and if that is overseas, then the jobs move abroad. The profits remain, the wages and benefits go elsewhere