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Why do businesses think they can pay people less just because unemployment is so high?

Must be a good time to find cheap labor, I guess they think everyone is so desperate, they'll work for pennies. For example, my career is in accounting, okay, the market rate for pretty much anywhere in Michigan for an entry level accountant is 35 - 40K, tack on about 5k for each year of experience you got. I've seen postings that require 3+ years of experience, a bachelor degree, and they want to pay them $8-$9/hour. Searching through jobs, I've seen quite an array of positions that require a lot of experience and credentials, and pays pennies. It's called exploitation. Employment is not a supply and demand product, it's a way of life! Just because people need jobs isn't any reason to take advantage of this bad situation. Skillled labor is starting to become cheap labor, and the people on top are making more and more money off of it. They forget it's the employees that make their business function. Maybe they should set different minimum wages for those with certifications or degrees, maybe set it by profession, or experience level. Something has got to change this attitude of businesses thinking they don't have to invest in their employees, that they are just lab rats! What do you think?

Public Comments

1. Free market. If there was an accountant shortage, would you expect a higher salary? Of course you would.
2. (yawn) . . . . . . . .
3. That's the capitalist way more demand less pay
4. You have a choice - - don't work there. More troubling is the exploitation of the American people by their own government. That's where you should focus.
5. Another tyrannical thing some of these companies do is lay off workers who make a fair amount of money (they'll make the excuse that they can't afford them) and then make the current employees work overtime for less.
6. Change! Hope! Obama! <3
7. The can pay them less. And in most cases, they have to. Because they can barely stay in business, and must sell their products and services dirt cheap to survive.
8. My company is hiring staff accountants at $70,000 to start. You make what you are worth to a company, that has many factors including demand and geography.
9. Or maybe because a lot business are hurting just as bad as the people of this country.
10. becuase 1) many people are extremely desperate for jobs 2) big corporations are far more interested on profit maximization than the welfare of their employees and 3) america is a capiatilstic country
11. why do you think businesses owe you anything?...dont work there...you do not have to...only in socialist/communist countries are you forced to work...
12. Because that's what they teach them in business school. Save a dollar today, even if it costs a thousand or two a year later. And when unemployment gets better, they will just lose all their employees, as job dissatisfaction is at an all time high, one reason because of just what your wrote. Edit: for the people who think their employers are having a bad time too. I work for a corporation that posted 1.75 billion dollars in profits, yet hasn't given their secretaries a raise in 6 years. They pay them so little they can't afford health care, so our tax dollars pay for their health care. Ain't America great?
13. Supply and demand. The labor supply is high and the demand for jobs is even higher. The largest transfer of wealth in the history of the country happened over the Bush years. Your house that was worth $600,000.00 when President Clinton left office is now only worth about $325,000.00. The job you had that paid $100,000 a year now pays $65,000. Bush robbed the middle class and poor to line the pockets of the big oil companies.
14. A) the economy SUCKS and job openings are few and far between. Therefor the employers can pick and choose employees not the other way around. B) The economy SUCKS and this president is NOT business friendly. Maybe they can't afford to pay them more.
15. we are not lab rats. we are modern day slaves. slavery is now a way of existence in America until we the voters and we the people grows spines and balls, and load our guns and take back our government from congress's corporate masters.
16. It's called taking advantage and capitalizing off of the situation. The slave wage has been around for awhile. You have to laugh in their faces when they try to offer you peanuts for your skills and education, then keep on stepping.
17. High unemployment = masses of people with degrees, qualifications, etc = less pay for the same job that paid more a few years back. Exploitation? Wow - where's your common sense? Didn't you have to take a few economic classes in college to get that accounting degree?
18. The law of supply and demand has been around as long as man has, it can't be repealed.
19. Perfect time for you to start your own accounting firm! If you think employment is a way of life, you might reconsider the meaning of life.
20. Josh, you must be completely ignorant. Jobs, like any thing else, are subject to the market. Large supply of workers + small demand = a glut of workers. If they want to keep their experienced workers they will, but if you have many workers chasing few jobs the odds favor the business. Just like when you get more money for jobs businesses can't fill because there aren't enough skilled workers. Labor is the biggest expense a business has. Now you want govt. to set different minimum wages? Holy crap! Majorly dumb idea.