Labor Law? How Important Is It Really?

Throughout the long course of history, we have witnessed countless lessons from economic ups and downs. Take the Great Depression in the United States and the Japanese Bubble Crisis as examples; behind these profound crises lies the depletion of consumer power. History tells us that the alleviation of every crisis relies on stimulating consumption potential. In this process, various means of stimulating consumption have been attempted, undergoing countless struggles and compromises, ultimately leading to the birth of labor law in the balance of economic and social development.

Labor law is not just a legal document; it is a solid shield that protects the living standards of lower-tier labor groups. Only when the consumption capacity of this group is guaranteed can social consumption truly form a virtuous cycle. Imagine, if workers can only maintain a basic standard of living, then various goods and services in the market will attract no interest, and the prosperity of production will be nothing but a castle in the air.

However, the key issue lies in what the standard for “guaranteeing the consumption level of the lower tier” is. It should be continuously upgraded with the level of economic development. In the initial stage of economic development, perhaps mere subsistence is sufficient; but as the economy flourishes and the diversity of production increases, the basic living standards must also rise accordingly. Otherwise, when the domestic market cannot absorb excess capacity and the overseas market shrinks due to financial crises or intensified conflicts, the surplus goods will have nowhere to go.

At this point, businesses, in order to survive, must seek to reduce costs and increase efficiency. In this process, we see different choices made by domestic and foreign enterprises: domestic companies tend to lower labor costs, while foreign companies focus more on optimizing the costs of the labor process. This difference is not coincidental, but rather the accumulation of historical lessons. In the past, they attempted to reduce costs by cutting labor costs but ultimately found that such practices only lead to a more serious and complex deadlock.

Therefore, the effective implementation of labor law is an important basis and pathway for solving many problems. It plays a positive guiding role in the current social development and consumption stimulation.