November 13, 2025
Wages and Profits
In a free market system, an increase in wages
does not reduce companies’ profits but is instead passed on to product prices —
that’s why Chinese products cost only a fraction of ours.
It is wrong to think that a decrease in wages corresponds to an increase in
corporate profits.
The problem is that, under globalization, products made with miserable wages
compete with those made with higher wages — and from this come industrial
decline, income polarization, and rising poverty in Western countries.