The results of low competition and high wages

Listening to the radio this morning one commentator was in Switzerland and remarked about his trip to a local McDonalds. The Happy Meal cost over $14.00; no that’s not a typo.

Switzerland is expensive, apparently very expensive. Well, there are several reasons including its market structure hampering competition and … grocery store clerks earn $25.00 an hour and a good thing too, especially if you want a burger and fries😛

Think about it‼️

2 comments

  1. I did think about it and in spite of the thought I put into the response as you suggested I still am of the opinion that Switzerland may well be a better place to live than the good old USA. In fact I may be onto something as a look at the attached link supports my opinion very well as Switzerland was rated as the #3 best place in the world to live. Here is a link to the article:

    http://www.lifestyle9.com/worlds-best-country-to-live-in-2013/8/

    The fact that they pay a high wage is a part of what also makes it a better place for ALL its citizenry not just a small percentage at the top. It is easy for us to sit and be complacent as we were fortunate enough to work for a corporation that paid well but what if you went to work for say IBM and after 26 years of faithful service were ‘scared’ that downsizing would take your job and so you were encouraged to take an early retirement and then at a dangerous age found yourself placed on the not so well paid list of much lesser ‘contract’ employers and left to dangle for a few years and then finally landed a job with another mediocre paying institution, the federal government, and finally realized at the age of 71 that it was ‘safe’ to retire. This is still a good story but it also is a true story of a friend of mine who was very faithful to IBM until they snuffed out his heart with the threat of downsizing and possible layoff. The story causes me to realize that what went wrong with this country was that in the interest of the corporate bottom line many good employess had the faith in their corporation killed and thus any allegiance they had felt to the Corp was vanquished. Now there is no allegiance to anyone but self. Obviously mine and your story is different but in the end we too saw the effect of downsizing and realignment and for some that too was painful and so again allegiance was shaken and now I ask why is there remorse for big corporate America? Because we are all expendable and that in turn makes people unfaithful to anyone but self.

    Perhaps Switzerland has the right answer give all a fair shake and in the end it would be a better place.

    Like

    1. Don’t forget your skis. Seriously, you have a point about allegiance to a corporation. Many people didn’t realize that so-called paternalism was dead and they had to look out for themselves. The idea of a single long career is long gone, but I’m not sure if that is good or bad. I think we may have to admit that most people are not able or inclined to take care of themselves and are much more comfortable with government or in the old days corporations taking care of their futures. Sad, but I’m beginning to think it’s true.

      As far as the Swiss go, seems like a bit of a trade off. Higher wages and higher prices. How much better are you paying four times as much for a hamburger even if you earn three times as much per hour. I’m told housing costs there are also astronomical.

      Like

Leave a reply to Bob B Cancel reply