Is American labor overvalued?

Question

More jobs are moving over seas because the work can be done cheaper and more efficient than at home. With the proposed minimum wage increase bill, we'll find more jobs becoming scarce.

Do Americans really expect more from their labor than anywhere else? Is American labor really worth the value many workers seem to believe it is worth?

Answer 1

In some cases involving unions, yes -- unions have used their monopoly power to strong-arm more money for labor than it is worth. It's easy to spot those cases, just look for the devastated money-losing industries. e.g, Detroit. Also one could argue many government employees also are paid too much.

However in the free market private sector, the answer is no -- except when suddenly the answer is yes and layoffs occur. The economy is dynamic so things change, and sometimes people lose jobs because its cheaper to source the jobs overseas. However, this effects only a small fraction of the economy, despite the constant overblown hysteria.

For the most part Americans are worth their pay: we know this because employers who know the economic reality of their business freely choose to pay those wages. End of debate.

Americans are paid more than people elsewhere because American labor is more productive. More productive labor is rewarded better. This is a stone cold economic fact. A typical American worker makes more money than a French worker, because the American worker produces a greater value of goods or services with his efforts.

As long as we can maximize growth in economic productivity, we can and will be paid more and more and more....

Answer 2

well, I really do think that american labor are over valued and you could get the same job done in another country for a lesser value. But without it we wouldnt be able to run the country and we wouldnt afford to live in this country. That's why people are mad at the immigrants for coming to this country and willing to take a lower pay compare to everybody else. I know engineer from asia who are working for 40k a year rather than what they should be getting in the Bay Area. So yes, I do believe that we are overvalued when it comes to labors.

Answer 3

Not really. Americans have the one of the worlds hardest working most productive work forces. Its not just the labor but the ability to utililize the capital equipment. That is because private property (capital) is protected by law in the U.S.

A lot of jobs are moving overseas. But I believe the biggest reason is the tax structure of the U.S. Income and taxes on profits force companies to go overseas to avoid these taxes. For example payroll taxes are inbedded in the cost of American goods whether they are exported or sold in the U.S. If we got rid of payroll and income taxes and replaced them with say the Fair Tax. Exported goods would no longer have them imbedded taxes and would be cheaper which would increase imports. Goods imported would have the sales tax applied against them making them more expensive.

Our tax structure is the biggest single factor for jobs moving off shore.

Answer 4

I believe we as Americans expect alot from are employers, and if your an American with an American education and strong work ethics, then heck yes your worth it. We expect strong standards and the employers expect us to be of strong skills and of the higher American education. Are companies taking advantage of what they wanted from us Americans, yes, and those are the ones who are only interested in the bottom dollar. And taking our possible job opportunities and moving them out of our country.

Answer 5

Yes, it is..
Labor unions and liberal/socialist democratic politicians
have destroyed the American manufacturing industry
and sent it to Korea/Taiwan/China/Mexico/India etc. etc.

Answer 6

things cost more in America ...