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Old 16-10-2015, 14:12   #44
tweetiepooh
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Re: Should the coal mines in the UK be reopened?

It's not easy getting wages down. Where do you start?

Now if you could reduce wages at the top end of the chain (not just the bosses but the end "producers") and then reduce the price of that end product you can start to lower wages further back as they could still afford to new lower priced end product and that reduces the prices of their intermediary and so on.

Problem comes is that wages get reduced but prices don't follow, just more profit then the benefit isn't felt.

OK I'm not stating this very well.

An issue was that wage reduction started back at the raw material level, so those workers were worse off in pocket and the things to buy remained expensive as reductions in price if any hadn't flowed through.
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