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The economic problems of our country are complex, but I will focus upon only one – reducing labor costs. To be more competitive and to make more profit for their stockholders, businesses work to lower labor costs. Corporations do not like labor unions because they work to get workers more salary and benefits. Business does not like minimum wage because it increases the expense of labor. Companies do not like social welfare programs because they increase taxes.

Corporations out-source labor to lower costs. Some companies hire illegal aliens or aliens on work visas to lower labor costs. If a business faces a decrease in growth, they lay-off workers.

A number of economists that I consulted say that we have a consumer driven economy. Indeed some say that consumer spending accounts for two thirds of our economy . Many claim that for years, our prosperity and growth has been fueled by spending. Seems that America is the world’s largest market.

Well, since we have an economy that is driven by consumer spending, if we keep wages low and unemployment high who will purchase the products and hire the services that companies offer? Where is the logic?

Today rich investors no longer have confidence that profits will result from their investments. These rich folks brighten when they hear that a company is shedding jobs to statistically improve profit margins. Do they somehow believe that consumers in other countries will purchase the products? Hey, everyone else is bringing their wares to America to sell. Where is the logic? Does the chance of making money turn off logic?

We need a new mind set in the business world. A new principle could be: any action that increases the purchasing power of the “working” class is good for business. Accordingly, reducing worker wages and downsizing jobs hurts our market. If we produce a good quality product, the buyers will come.*  We need only to examine Toyota and Honda versus General Motors and Chrysler to establish that point. Our customers include our workers. Our very best consumers are our own people.

Can our business leaders see the “handwriting of the wall? What do you think?

* I will deal with imports in a different commentary.