2018.09.09 03:44
https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.nytimes.com%2F2018%2F09%2F08%2Fbusiness%2Feconomy%2Fharvard-living-wage.html%3Fsmid%3Dnytcore-ipad-share%26smprod%3Dnytcore-ipad&data=02%7C01%7C%7C452a6b51728840e8deca08d6167a5d7f%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C636721112133042864&sdata=M8Rga9AWmQXGj3Wdd3LxGB1Si6PhW4KFjdlW8UWwERo%3D&reserved=0
Students forced the university to shield campus workers from outsourcing’s impact on pay. But as a model, the policy challenges some economic axioms.
2018.09.09 04:08
2018.09.09 07:15
https://m.youtube.com/watch?v=0xMCWr0O3Hs
(Economy class: Income inequality)
Corperations always looks into cutting the cost to increase their profits. More
profits lead to higher stock prices. If wage is too low, then buying power is down.
Eventually it will bring down stock price because people can not buy their products.
In 1929 one year before Great Depression and 2007 one year before Great Recession,
the income inequality was at the peak. Capitalism in its design always leads to “widening
income gaps” and standstill of the economy. Constant corrective measures by the government
is essential not to fail it.
The exactly same thing happened in Detroit for decades ever since
the original Henry Ford raised the salary of his auto workers to the high level
nobody dreamed of. He figured that once his auto workers live well as middle class families,
they will buy his cars.
When I finished my rotating internship in Albany, NY, in 1966 and
was about to leave Albany for Detroit, the hospital administrator, Sister Margaret, told me
that Detroit is a wealthy town and has more millionaires than any other city in America.
A typical auto worker at that time was a high school graduate and was considered to be in
middle class with a vacation home in Northern Michigan and two or three cars.
Unfortunately their unions got too powerful and they became lazy and too greedy.
We know the rest of the story so I shall omit.
Nontheless Harvard showed a good example in that like the good hearted intention of Henry Ford
it indeed can be done in such a dramatic way to transform this world into a dream paradise
for so many people including every one of us who left Korea in 1960's and 1970's.