Cheap labor means MORE PROFITS. Look at the statistics.
Here's one to get you started:
http://www.marketwatch.com/News/Story/Story.aspx?guid={C4257910-8351-437A-8C00-E4CF3B782091}&siteid=mktw&dist=
Corporate Profits at 40 Year High; Wages at 40 Year Low
WASHINGTON (MarketWatch) -- U.S. corporate profits have increased 21.3% in the past year and now account for the largest share of national income in 40 years, the Commerce Department said Thursday.
Strong productivity gains and subdued wage growth boosted before-tax profits to 11.6% of national income in the fourth quarter of 2005, the biggest share since the summer of 1966.
For all of 2005, before-tax profits totaled $1.35 trillion, up from $1.16 trillion in 2004 and just $767 billion in 2001.
Meanwhile, the share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966.<snip>
The threat of raising prices is a tool so that you will support cheap labor. Prices are dictated by what the consumer will pay, not a set markup. It's Econ 101.
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