Re: Cheap == Good is a fallacy
"You are right about one thing, cheap does not always mean good. But if you sell the *same quality* product at a lower price because you have structured your business in a superior way to your competitors, and in such a way that the government doesn't punish you for it then that is *a good thing*."
Not if you cut your labor costs more than the price of your goods. Remember that your employees are also potentially your customers, and if you price your own customers out of the market, that's like cutting your nose to spite your face. Because employees can also be customers, labor costs can have both knock-on and cyclic effects that can be very tricky to predict on your own business because the effects are so indirect.
The TL;DR version: what good is keeping your prices down if the only way to do it is to cut your wages to the point they can't afford to buy your goods since everyone else will be doing the same thing, too?
Biting the hand that feeds IT
