On this issue I am with Hangtime, Toad (hell is frozing!!

) and Karnak.
The quote from chumski is spot on.
Anyway, we can try a little imagination experiment (and looking around, with open eyes in the actual world you can find pieces of what I am gonna say) of you society.
Mister A is the owner of a factory, producing something that is not strictly necessary, a luxury thing.
The production require 3 types of workers:
level 1 (5 of them), high skilled, for product improvement and high level conduction, pay is 200 (5x200=1000)
level 2, (20 of them) medium skills, technicians, and white collars, pay is 100 (2000u)
level 3, (100 of them) low skills, commoners, pay is 50. (5000u)
Personnel cost is 8.000 monetary units
Mister B, C and D have a similar factory.
The market support an amount of 400 pieces of that product.
There are 2 choises the four can do.
1) They fight for the market, let's see what can happen:
the starting price for a single piece of the product is 100, so the market offer a total of 40.000 units(u), each factory can produce 100 pieces (10.000u total), the cost of the single piece is 80, so there's a 20u margin each piece, (we will ignore the components, materials to simplify).
Mister A decide to lower the price to 90, he have a lower margin, of 10, but he can sell more pieces, how he can mantain the gain?
By improving production (automation, optimization) in this way he dont need to raise the number of workers.
But there's another way: the other factories will be in the condition to cut their workers, for the lower demand they are experimenting.
At this point he will have a group of workers of level 1 and 2 free hands, and with little market to sell their skills, he will have a bigger amount of workers of level 3, too.
He will then offer to the unemployed people a lower pay, granted that something it's better than nothing, they will accept (or die), the already working people will accept too, to not lose their work.
so we will have:
Level 1, 7 people, at 120 = 840u
level 2, 30 people at 50 = 1500u
level 3, 150 people at 20 = 3000u
total 5340.
cost of single piece= 53.4.
gain for single piece is now 90-53.4 = 36.6.. WOW lower price, more gain!!
let's low the price more!!

OBjection: but the others producers will do the same!
Answer: Yes! but the final result does'nt change.
At the end two possible scenarios arise:
B,C and D are eliminated, from market, A it's in monopoly, and can decide the prices, and (evil, real evil!

) the pay.
or,
A,B,C,D will reach the lower level mantaining a minimum gain.
Who is the loser in the above example?
The worker.
Look around you, and you will see plenty of examples of the above situation, enlarged worldwide with globalization.
Society have developed specific anticorps for this kind of evolution, the trade unions, almost pacific, and the revolutions (read commies

).
The force of the first, and the fear of the second mantain the capitalist pig

tendency.
Now let's see the second possible situation (the new solution to avoid the above ghosths: trade unions and revolution, in act now).
2) Mister A,B,C and D meet, and reach an agreement:
"we will share the market at 25%, we can even lower the pay of our workers without reducing our gain, au contraire, improving our gain.
More, we can contact mister E, a mass media owner, so he cut start a "information campaign" to convince the market that our product is a must!! nobody can survive without it!!
Pubblicity is the base of the commerce, no?
Then, we can start with mister F a school, a private school, that will teach the childs of the various level workers, just what is needed to do OUR work, so they cannot do anything else than accept to work for us... and we will offer the school for free, too... muhahaha!!!"
The 2nd situation is what is happening here in Italy, the Berlusconi's hidden way, scary, is'nt it?
The main difference is that all the above misters, are mister B.

@Santa: where is the hope? did you see hope in the above examples? (unless you are one of the lords).
@Toad, Hangtime, and the "US above anything, and you are all ungratefull SOBs" types:
What is happening now, globally, is almost the same of my examples, extended worldwide, with the USA as "level 1", the western countries as "level 2" and the third world as "level 3", the misters are the multinational companies, above and out from any government control, even your government.
The people is in some way percieving.. feeling... where the things are going and, with different excuses, is pointing at you and your servants (western countries) as the root of evils.
The sad part of this vision is that the better subject that can do good and improve the situation, maybe, is the same that take advantage from it, so there's little hope for a good and safe solution for everyone.
The said subject, it's clear, is the people of USA.
Dark times coming.
Signed:
Cassandra

Disclaimer:
There's no guilt given or judgement, in my position, theese are forces above the people, it's not in accusing stance that I am saying that, dont read it as a bashing attack, I believe to be a world citizen, so you are my brothers, everyone.
And i am no religious type, go figure
