RE: Force Companies To Pay More And Jobs Are Lost
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My area in South Texas has benefitted from unions pushing up wages up north. I live on the Texas-Mexico border. Machining jobs that pay $25/hr up there can be done for roughly $12-$15/hr. And, greater savings can be achieved by shipping the rough work across the river, to Mexico. The products are then brought to the US for finish work. For now, we still have an arbitrage advantage. This is a main draw that our local leaders use to attract manufacturing to the area. That and unions aren't very strong in Texas.
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That is true and business always followed the lowest cost of labor. However, the lowest of all is automation.
At some point, as that arbitrage window is closed, we will see more incentive for automation by major corporations.
Once the process starts, we will see things accelerate. COVID-19 could be the thing that kickstart this process, or take it to a greater degree.
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