Tuesday, August 18, 2020

Make No Mistake About It...

Business and Industry's SOLE FUNCTION is to MAKE A PROFIT...  and, these companies have not been created SIMPLY TO PROVIDE EMPLOYMENT TO YOU...
Business keeps track of money in the following way:
Revenue
(expenses)
Gross Profit Margin
(taxes)
(debt)
Profit

Let's break down expenses:

  • raw materials
  • utilities
  • labor (direct)
  • supervision (indirect)
  • plant and equipment

Once we have all the COSTS OF GOODS SOLD, business and industry can calculate a cost per unit of production and determine a price...  that price is then adjusted based upon demand and what the competition is pricing their product at.  In some cases, prices are intentional dropped so that the company is experiencing a loss, to drive their competition OUT OF BUSINESS.

Unfortunately, LABOR is nothing more than a cost of doing business and just as business and industry try to negotiate lower and lower costs for their raw materials, so too will business and industry decide to pay as low as they can for their hourly workers.  If business and industry are willing to pay a higher price for their supervisory and management labor, it is only because it is perceived that these people will help them reach their quarterly goals, unlike hourly labor who typically want to work as little as they can and still get paid, especially if the job is not enjoyed.

The families of hourly workers are NO DIFFERENT than business management because they attempt to get their food and other necessary items as cheap as they can, playing one store off against the other store (price matching) and/or by using coupons.  They try to buy their clothes as cheap as they can typically buying whatever they need when it is on sale.

BUSINESS AND THESE FAMILIES ARE NO DIFFERENT when it comes to saving money on items they need or bills that they need to pay.

If an hourly worker's family needs renovation done to their home, they are going to get THE LABOR THAT IS THE CHEAPEST...  not the most expensive.

BUSINESS SIMPLY DOES THE SAME THING.

Both business and the hourly worker's family want to make as much PROFIT AS THEY CAN...

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