On Thursday, October 30, 2014 6:30:24 PM UTC-4, Ignoramus28704 wrote:
We all have heard of "poverty cycle", where people are trapped in low
paying jobs, have to work a lot just to make ends meet, have no time
for education, start drinking on top of that etc.

This poverty cycle is real, and while it is possible to get out of it,
it takes a real feat and a superhuman effort.

What I want to bring up is that there is an analogy of poverty cycle
for businesses. This is includes one-man businesses, just as well as
larger companies. The poverty cycle for a company is being trapped
in a low return, high hassle business. Similar problems accompany
companies in poverty, such lack of funds to improve, lack of time to
think about doing things differently, being unable to reject
undesirable clients, etc.

A big effort needs to be made to stay out of the business poverty
cycle. Getting out of it, may be completely impossible (unlike for
people).

No. Traditionally, low income workers call to bring union reps to the job site and they rally out in front until the business agrees to big labor terms. (Like what McDonald's and other workers are doing).

In Europe, they rally and march several times a year just to keep pressure on businesses to stay on big labor terms. In the US they hardly ever rally or march. Therefore big labor contracts involve lower pay and less benefits.

(because there is no pressure on industry to pay higher wages)