| Everything hikes except salary!!! | |
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| Sep 25, 2007 00:17 | #21   |
 | And finally, when a company increases its productivity usually done by investing time in employees' training and/or money on better equipment (like I said before and you disagree with...) it DOESN'T create un-employement for its employees. Why? because the company would then: make more profit, invest even more (to produce more since their business works!!) and ultimately create more jobs: THAT is the soul purpose of companies: more, more, more and even more: this is the sad reality of doing business. To close the loop: high selling prices will bring money in only on products with almost no transformation needed: and you guessed it right: things like eggs, milk, flour,... : saddly the things most needed by rich and poor people. This is why they should be the first and foremost things to be regulated since the gouvernement would then adjust prices when needed: in cases of drought, pest infestations, frozen or lost harvests, international factors or variations.... Woohaa! quite an answer again....I'm getting Paul's syndrome now: sorry if all my numerous lines offuscate some readers.. |
| Sep 25, 2007 13:04 | #22 |
| Quote: "PLEASE explain me more about how increasing salaries can do anything good to any business because I really don't see..." For sure, have you ever heard about fordism, this is how, during the 30s especially, that the standard of living in the US increased especially for the poor population... Heard of this? And more interesting: the conditions are good to implement it in China since the population growth is high, markets are far from being glutted, and the place of the services in China is definitly not as important as in Europe. You ll ask what is Fordism, I ll answer first it is a production model used in the industry. The caracteristics of it are mass production (because of work division) mass consumption (possible because of an increase of the wages) but most important, the consensual sharing of productivity gains between producers (profits), workers (higher wage), consumer (lower price). It could be applied in China... Needs to improve productivity to increase salaries that's all. And for sure selling in the country you are from and selling abroad is not the same. In this case it will be more efficient if the target working population is poor since they have basic needs and cannot afford buying foreign products... Chinese case matches... Strange isn't it? You also said in this case as the price of raw materials are increasing, they cannot pay higher salaries to the workers. I totally agree on this, I was saying this in general (it works especially for good which VAT is high). For the prices of wheat, well I said in my very first answer that it could be a reason for the price to rocket like this please read it. Quote: "High inflation could also mean that there is more money circulating and that the demand for goods is increasing" I never said the contrary, but you are right I didnt mentionned the quantity of money circulating in the Economy but there is a reason for this, the Chinese currency is totally controlled by the Chinese governement, not suffering from the speculators' influence and it s money is not accepted anywhere but in China, so its effects are quite reduced (it is part of it I m not denying it). |
| Sep 25, 2007 13:08 | #23 |
| Quote: "And finally, when a company increases its productivity usually done by investing time in employees' training and/or money on better equipment (like I said before and you disagree with...) it DOESN'T create un-employement for its employees. Why? because the company would then: make more profit, invest even more (to produce more since their business works!!) and ultimately create more jobs: THAT is the soul purpose of companies: more, more, more and even more: this is the sad reality of doing business." I never said improving machines will create unemployement. I totally agree with you on this point. Maybe we didn't understand each other. |
| Sep 25, 2007 13:14 | #24 |
| I just said you can replace people with machine ie Automobile industry in Europe or in the US (we are talking about industries here). In case of services it would be just like you said, an employee cannot be replaced there. |
| Sep 26, 2007 05:33 | #25 |
| Al, the only thing that I do not understand is your " sad reality of doing business" Business' have to grow or they will die. Have you ever invested your own money in a business? Had your house on the line and the welfare of your family in doubt? Dodger. |
| Sep 26, 2007 10:22 | #26 |
| Thanks again Erencius for clariying your view. Although I won't add to this post...we have to keep some for other threads..hehe! Dodger: regarding the sad reality of doing business: my comment was just coming from the fact that a company cannot just stop at one level of success, sit down and think or to respect more the environement, their employees and just how to do things better in general... Just my reaction to the fact the when successful, companies often 'money monsters' and nothing else; that is sad side of capitalism... And no I never had my own business or out my house on the line, but I joined a company a few years ago when there was 300 employees there. In the years I spent there, I saw that number locally rise to 9,000 and internationally to 16,000 (from acquisitions). When I was let go last year, the company was locally down to the same level as when I started and internationally to probably less than a thousand... So in a few years, I saw the good (and very good) and the bad of a company in accelerated; a very valuable lesson. And please don't ask me to talk about what the company shares did...hehe! Hint: drama or horror story. Hurray for the high tech industry!! |
| Sep 27, 2007 04:11 | #27 |
| Quote: when successful, companies often 'money monsters' and nothing else. AL, I agree with you on this point. Profit is the only thing they care about. It is very sad. |
| Sep 27, 2007 06:20 | #28 |
| Jimmy, we all work to create a profit for our selfs. We all sell our self on the market in different ways. It is not always plesent. Al, I understand where you are coming from as the same thing has happerned to me after 17 years of making a profit for some faceless men and then being asked to move on. I wish I had kept my share options. In a differnt age we would be fighting the invader but today they wear different clothes. But stay well. Dodger |
| Oct 4, 2007 22:34 | #29 |
| Quote: Jimmy, we all work to create a profit for our selfs. We all sell our self on the market in different ways. It is not always plesent. Yes, DODGER. But I believe that except the profit, those companies should do something good. I see that it is not always pleasent. Why not try to make it better and pleasant? Perhaps, I am a little bit innocent. |
| Oct 6, 2007 07:45 | #30 |
| Jimmy, These companies do good by creating jobs. But note that most people employed in the UK and Australia work in small business’ (70%) not big multi nationals. In the last spring you saw the trees produce more blossom than they deeded to survive. So surly to produce more than we need is a very natural part of nature and life. Is looking at the cherry blossom not pleasant? Dodger. |
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