Capital goes where the labour force is cheaper

As I recently commented about Republic's occupation: "industrial production is leaving the so called developed countries where the labour force is to expensive (read wages). The industrial production goes towards the growing countries where the labour force is definitely cheaper.

I would like to add that:
the so called de-industrialization process is easy to explain by following the Marxian theory illustrated in the Capital.

Capitalists, willing to make more profit as possible, go where the variable capital (wages) is low or can be (it is allowed to be)low. Therefore, they go to invest where the laws in favour of higher wages, conquered by the workers in the past, are not existing or respected (see very recent example of the Primark’s scandal).

No matter if it is Taiwan (Asia) or Manchester (Europe).


Enjoy the links


http://news.bbc.co.uk/1/hi/uk/7825167.stm

http://www.manchestereveningnews.co.uk/news/s/1089829_disgusting_but_primarks_so_cheap