Tag: business

Why firms actually underpay their workers

Posted on by Lone Candle

At the lower range of the wage scale, businesses have so much leverage over workers that they can suppress wages under competitive market rates. Because of this, an appropriately priced minimum wage doesn’t hurt employment, and actually increases it because more people are willing to work for that higher wage and they are less likely to quit.

The increase in wages results in higher prices and lower profits. The higher prices do not cancel out the wage growth with inflation because only a minority of the cost of all the goods and services people buy are from people who make near the minimum wage.

https://www.youtube.com/watch?v=rQKDTbLO0fM

How Big Tech Became The “Bad Guys”

Posted on by Lone Candle

Some companies use regulations to their advantage. They beat companies that are obeying the spirit of the law, by finding a loophole that absolutely destroys the spirit of the law, but technically, can be argued to follow the rule of the law. Cheating companies have a competitive advantage and the nice guys finish last.

This strategy is aided by weak regulators.

Sometimes this is bad because the regulation fails to prevent the harm it was supposed to stop. Other times it is good because the regulation was preventing new and disruptive ideas from flourishing.

https://www.youtube.com/watch?v=q37yxPUAC24

Apple Doubles Down on China as Trump Blinks | China Decode

Posted on by Lone Candle

The Chinese Communist Party forced Apple to lower prices on the Apple Store for Chinese residents. Trump talks big, but he lets the Chinese Communist Party push around American companies.

https://www.youtube.com/watch?v=WARSIG9iq8A

Trump moves to undo tax rule that Biden said would bring in $100 billion

Posted on by Lone Candle

“The Trump administration signaled a plan Friday to revoke a two-year-old tax rule designed to crack down on an arcane but highly lucrative tax avoidance tactic used by some of the largest and most complicated businesses.

If enacted, the Trump administration’s proposal would mean that large business partnerships no longer need to tell the IRS when they shift assets from one corporate entity to another. Those transactions, called “basis shifting,” have allowed businesses to dodge tens of billions of dollars in taxes, the Treasury Department alleged in the past, by illegally depreciating the same asset over and over again.

…

the IRS workforce has shrunk drastically under Trump. In the first months of his term, more than a quarter of the agency took buyout offers or otherwise left their jobs.”

https://finance.yahoo.com/news/trump-moves-undo-tax-rule-204632497.html

Andrew Ross Sorkin on the Crash of 1929 & The Parallels We See Today | The Real Eisman Playbook

Posted on by Lone Candle

So before regulation, the great tycoons of the era just acted like greedy unethical thieves in financial markets?

https://www.youtube.com/watch?v=Yp6EggtUBYI