> the general attitude towards 'lowest price' in America is what could eventually bring the downfall of America
Globalization is the real culprit here.
Before the 1970's or so, the US economy was isolated by tariffs and higher shipping costs. Since labor unions had a monopoly on labor in many jobs, workers were able to extract excellent wages from their employers.
Now that goods and services can move relatively freely across our borders, then labor unions can't demand higher wages, because the union isn't a monopoly any more -- industry has the option of relocating operations overseas.
The downward pressure on wages from this has resulted in a redistribution of wealth from labor to capital (I'm not on board with many of their policy suggestions, but the Occupy movement was on to something with their "top one percent" rhetoric).
As they lose earning power, people start to cut their budgets. When you're watching what you spend, price becomes more important than product quality or the feel-good vibes from shopping at a small local store. This allows the Wal-marts of the world to win.
Globalization is the real culprit here.
Before the 1970's or so, the US economy was isolated by tariffs and higher shipping costs. Since labor unions had a monopoly on labor in many jobs, workers were able to extract excellent wages from their employers.
Now that goods and services can move relatively freely across our borders, then labor unions can't demand higher wages, because the union isn't a monopoly any more -- industry has the option of relocating operations overseas.
The downward pressure on wages from this has resulted in a redistribution of wealth from labor to capital (I'm not on board with many of their policy suggestions, but the Occupy movement was on to something with their "top one percent" rhetoric).
As they lose earning power, people start to cut their budgets. When you're watching what you spend, price becomes more important than product quality or the feel-good vibes from shopping at a small local store. This allows the Wal-marts of the world to win.