Forum Post: Monopsony

The top dogs pay more for labor and the middle men take it all, while paying minimum wage [no doubt] to those who actually do the work. How many otherwise good people will rationalize these travesties by saying of the parasitic creeps in the middle, "It's their business."

Monopsony is as great a danger to real people as the oligopolies that take the little money we make and saddle us with life long debt to get what we need to live in our capitalist utopia.

The workers at the bottom of this pyramid of parasites are really fucked by everyone in the great pile of "entrepreneurs" above them.

"Like a fissure in a once solid rock that deepens and spreads, once a business sheds an activity like janitorial services or housekeeping, the secondary businesses doing that work are also affected, often shifting those activities to still other businesses. A common practice in janitorial work, for instance, is for companies in the hotel or grocery industries to outsource that work to cleaning companies. Those companies, in turn, often hire smaller businesses to provide workers for specific facilities or shifts. Because each level of a fissured workplace structure requires a financial return for their work, the further down one goes, the slimmer are the remaining profit margins. At the same time, as you move downward, labor typically represents a larger share of overall costs - and one of the only costs in direct control for satellite players further from the superstar firm around which they orbit."

https://www.nakedcapitalism.com/2018/09/why-we-should-worry-about-monopsony.html