“The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers. One’s own employees ought to be one’s own best customers.”
Henry Ford had it right, nearly 100 years ago.
Modern management theory taught at Post Graduate courses the world over denigrate people to the point of simply an entry on a spreadsheet. The objective of
'reducing labour unit cost' is the raison d'etre
Airlines with a few notable exceptions blindly follow the conga line of labour unit cost reduction. Consequently outsourcing is a standard play! For MBA trained accountants it is never about people, never about collective effort, it is simply about cost. In such an equation a downwards spiral continues. Faced with declining taxation revenues, and with both sides of politics as inept as the other, for they are neither learned nor scholarly they listen to their donors (employer groups) further restricting wage growth.
Years of stagnant wage growth in Western economies now have the negative feedback; employees lack sufficient personal disposable income to be avid consumers, so demand declines and management are puzzled. Revenue stagnates, so they cut more costs.
In Australia the enlightened political leadership believe running immigration at 2.5 times OECD historical is the way around it; more immigrants, more consumers and GDP grows.
They never look at GDP per capita as it continues to fall, so despite snake oil salesmen (Property Council Treasurer Scott) telling you your 'elected members' want wage growth they do not. Employers like oversupply, keeps labour keen, just like in the 19th century! Employer groups also donate much more money