The Bridge of Asses

[The One and Only...]

Don't know much about business, do we?

If wages were drastically reduced by all companies, then prices would have to be reduced so that they could continue to purchase goods. Sure, the middle class could afford these goods: but a large part of the profits that come from such places like Wal-Mart are from the lower class. In addition, companies that increased their wages would out-compete other businesses for labor resources.

Let's also not forget how unions would react were wages dropped.

In short, there are economic reasons for maintaining wages.