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by varispeed
218 days ago
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People often miss: - Productivity is low, because the pay is low and from that comes everything else (thinking of paying the bills instead of the job, being seen as "cheap" by others etc.) - Nobody cares about "social status" if the pay is right. Status comes from pay. - There is some merit to that, but I think the real reason was outsourcing. Why invest at home if you can get the same or better cheaper from overseas. The problem is the UK is the class system. Shareholders see workforce as slaves and not equals. That's why we see wage compression and it is now next to impossible for working class to climb the social ladder. So why bother? Your quality of life will not be vastly different whether you are stacking shelves or develop software. Everything is being creamed by shareholders, who also enjoy preferential tax system and other incentives not available to working class. |
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Capitalism demands that companies show continous growth, or they are classed to be failing. The UK is very small on the world stage, and so inevitably all manufacturers come up against the need to export and grow beyond the UKs borders. This is when aquisitions and mergers from overseas corperations occur, and they have little need for an expensive workforce in the UK.
Foreign investors or parent corporations buy out the UK businesses, strip out the manufacturing, and use the brand recognition to turn them into shell companies for distributing the material which are produced much cheaper overseas.
This has happened time and time again with all raw material manufacturing, and is now happening to the food production industry too (the Cadbury story is used as a regular example around these parts).