Low Wages Lead to Labor Shortages

Let us do the math here. Republicans are blocking immigrants from crossing the border while they insist on keeping the $7.25 an hour minimum wage in place during an on-going pandemic, which has created labor shortages across many industries. Something has to give here, but this seems not to register quite well with the Republican Party and their corporate patrons as their policies of ebb and flow cannot face the economic reality of logic. Low wages lead to the labor shortages we are witnessing today, unless you are one of the mindset that economic slavery is an inalienable right. Something has to give, and at Home Depot, it seems labor shortages are imposing higher wages.

The same goes for other behemoth retailer like Walmart. Now you know why Republicans hate President Biden.

Corporations can resist this maxim. But economic middle management reality, as it trickles upwards to board rooms, are beginning to impose their will on the upper management. All trying to save labor costs to beef up their bonuses and stock options tied to performance.

We have to wait for future economic indicators to see whether both [corporate entities and labor] are better off, or whether corporations are still, indirectly, harming the middle class with their greed.

COVID PLAYBOOK

The COVID pandemic has set new economic and labor realities on our country. Besides the free-flowing money the U.S. Government had released in the form of PPP loans and socialized corporate giveaways to keep businesses afloat and the economy churning, corporations had to deal with consumers flush with cash who, for the first time, gained the power over the quality of their employment.

The pandemic, in fact, turned our resilient economic model on its head. Not only in terms of choices, but also in terms of employment migration and settlements. Tall and grand office buildings stand empty in most of America’s metropolis, which represent the signs that labor has experienced a disruptive chasm of such proportions that is forcing corporate entities to rethink more imaginative ways of keeping profits in sync with expectations.

The COVID playbook is under way. Where it would land us in the long run is yet to be fully clear. For now, though, it seems to have given labor a much-needed boost as minimum wages rise to confront labor shortages.

Because of COVID, the free-spending U.S. government has driven inflation to new records, which is affording corporations to increase their prices to adjust for both inflation and higher wages. In the midst of these turbulent economic times, where we land in terms of economic health for both the corporate entities and the consumers is anyone’s guess. We have to wait for future economic indicators to see whether both are better off, or whether corporations are still, indirectly, harming the middle class with their lawless capitalism and unchecked greed.

Meanwhile, no politician wants more immigrants to enter the country to help slash the labor shortages.

Low Wages Lead to Labor Shortages