The Mudcat Café TM
Thread #99746   Message #2024387
Posted By: Don Firth
13-Apr-07 - 02:28 PM
Thread Name: BS: Poverty in the USA
Subject: RE: BS: Poverty in the USA
In John Steinbeck's classic novel (and movie), Grapes of Wrath, there is an interesting lesson in economics. I can't remember the conversation precisely, but the gist of it is this:
        Tom Joad says, "Wait a minute, the handbill says they need 800 pickers. You laugh and say they don't. Now, who's the liar here?"
        The migrant tells him, "Now, how many of you men got them handbills?"
        The men standing around respond that they all have them.
        "There you are," the migrant continues. "Same yellow handbill. '800 Pickers Wanted.' All right, the man wants 800 men, so he prints 5,000 handbills and maybe 20,000 people see 'em. And maybe two or three thousand people start west on account of that handbill. Two or three thousand people that are crazy with worry, headin' out for 800 jobs. Now does that make sense?"
        When pressed further, the migrant says, "If you have one job, and only one guy applies for it, you have to pay him what he asks. But if you can get 200 men to apply for that one job, and if they're all worried sick 'cause their kids are goin' hungry—and you offer them just a nickel a day, they'll take it rather than see their kids starve. So, 800 jobs, 20,000 people needin' a job. If your kids are so hungry they're shiverin' and whinin' like pups, you'll work, not for money, not for wages, but just a nickel or two to buy a cup of flour and a spoon of lard."
Outsource enough jobs, lay off enough people, and you'll soon have a potential workforce of people willing to work for a cup of flour and a spoon of lard.

Basic economics.   Law of Supply and Demand.

Don Firth