Bad example. McDonald's sits squarely at the bottom of the food chain (pun intended), so they will always be the beneficiary of a trickle-down effect in the restaurant business (customers from mid-grade restaurants switch to cheap diners when costs go up, patrons of cheap diners switch to fast-food restaurants, etc.). McDonald's may not go out of business when ground beef prices go up 50%, but the country is littered with high-end restaurants that went out of business when their customers vanished after their steaks got more expensive.
If technology labor goes up in price then that should cause inflation. Either that or go out of business and let you competitor have all the market share.
The employer doesn't really drive wages. Customers do. If a customer is only willing to pay $X for an iPhone, then Apple doesn't have the flexibility to build wage inflation into the production process without making cuts somewhere else.
Really? Name one.
The employer doesn't really drive wages. Customers do. If a customer is only willing to pay $X for an iPhone, then Apple doesn't have the flexibility to build wage inflation into the production process without making cuts somewhere else.
Again BS. If a supplier raised the price of a chip set they raise their price. Labor is like any other commodity.
The problem is corporate loyalty and long term employment went out the window 30 years ago. Corps wanted to start to treat labor as a commodity. But they cant seem to get a grip on the concept. The want cheap loyal workers but treat them as commodities at the same time. Well all commodities are subject to the laws of supply and demand. Labor is just another commodity now. That is the way they wanted it.