Capitalist economy is driven by the employer's quest for profit. But along the way, capitalists must compete with others with similar products. This requires selling goods competitively – at a price lower than what is required for comparable products by competing companies. But selling for less jeopardizes profit margins. So capitalists seek out strategies to cut the cost of production. There are many ways to do this. But each time one capitalist restructures production to cut costs and sell cheaper, other capitalists marketing comparable goods or services are forced to do the same. In the end, whatever advantage the first capitalist achieves is nullified since competing capitalists must follow suit and sell comparable goods at the same or still lower prices.
Eventually, a company finds that it can remain profitable only by extracting more from those who actually create value by the expenditure of their labor. Hours are reduced. Wages are cut. Safety is ignored. Speed up is ordered. Insurance, medical and pension benefits are attacked. Union bosses [company trolls pretending to be on the worker side] explain that these measures MUST be accepted in their new contract, or the plant will close and their jobs will shift overseas. The company must remain profitable, and any job is better than none.
And yet this also fails.
Seeing the handwriting on the wall, other companies try to implement the similar measures. The union bosses fail to contain the opposition. A powerful strike vote is served! The plant closes and does move overseas. Now comparable goods are made in Mongolia by children who work 16 hour days and for mere pennies an hour. With tariffs abolished [thanks to 'free trade'], the US market is flooded with cheap goods. This puts pressure on the wages of US workers by compelling companies to compete with prices based on near free labor. US workers must compete with labor at the Mongolian price by accepting demands for draconian concessions.
This results in US workers having less expendable income. Sales slump, creating overproduction which further erodes profits. Remember: competition is relentless in capitalism. This system is self-destructive. It eats itself alive [and us in the process]. This system isn’t sustainable. Nor should we try to sustain it. It is inherently unstable and should be set aside. We need a new, revolutionary, economic system based on serving the needs of all, not the greed of a few.