And what makes you conclude that at the low end labor isn't much of a cost?! Nothing in your quote suggests that.I remember when I first learned of AOC. She had a great platform, but she seemed to neglect labor unions. But she's more than made up for that deficiency.
Alexandria Ocasio-Cortez on Twitter: "Union busting is a sophisticated & lucrative business. It specializes in the psychology of getting you to doubt yourself and your peers. Don’t fall for it
Listen to these Starbucks workers explain their experiences since starting to unionize, including pressure from the top. " / Twitter
noting
More Perfect Union on Twitter: "NEW: The workers organizing the first Starbucks union sat down with @AOC to expose the company’s unprecedented union-busting.
Former AFL-CIO Organizing Director Richard Bensinger says it’s the “most intense, most hostile, most vicious campaign” that he's seen in 46 years. (vid link))" / Twitter
Alexandria Ocasio-Cortez on Twitter: "You all bringing it down to the wire with a hunger strike and standing constantly + consistently with our drivers every day brought this victory home. Thank *you* " / Twitter
noting
Yuh-Line Niou on Twitter: "Biggest hug to @AOC . Her spotlight on the taxi drivers fight and her help with the congressional delegation was a huge part of this win. Thank you, friend. Grateful." / Twitter
Alexandria Ocasio-Cortez on Twitter: "Conservatives argue against raising wages ..." / Twitter
Seems like an economics paradox. I think that a likely explanation is that at the low end, labor isn't much of a cost to many businesses, so they can easily survive paying such workers more.Conservatives argue against raising wages by claiming it’ll raise prices. But that isn’t reliably supported w historic data.
However, what we’re seeing now is perhaps an ex. of prices rising when wages/benefits are *too low*- not enough workers, hurts supply chain, prices hike.
When people drop out of the workforce, it’s a pretty complicated & expensive endeavor to get them back.
The reason is bc unlike physical supply chain issues where problems are a bit more straightforward (not saying easy, but more clear), labor supply issues can be more complex.
You can see this in the issue of wages. You will sometimes hear stories of a place claiming to have raised wages but still having trouble keeping people.
Well, when a pandemic devastated intergenerational families of workers and there’s no childcare, people can’t go back to work
I haven’t seen data yet if those anecdotes are indicative of a larger trend (& if so, how large), but the point still stands.
Like many working class Latino families,my grandma lived with us growing up and cared for me as my parents worked. Until she moved in, my mom stayed home
My family is one of essential workers: school bus drivers, postal workers, cleaners, etc
When childcare wasn’t available, my family couldn’t work - they stayed home.
When childcare isn’t universally available, it impacts the labor market. It can become a supply chain issue!
For people saying this is too out there, read this WSJ coverage.
Women, low income workers, people of color are disproportionately represented in those not re-entering the labor force.
There are reasons for that!
Furthermore, making an issue out of that is what these people claim is a great economics fallacy: zero-sumism. So it alternates between being a fallacy and being a great truth depending on what they want to defend.