A is benefitting directly from the exploitation of C through dividends earned on the product of poorly payed labor of C, while B benefits indirectly from the low priced commodities afforded by A’s exploitation of C. A and B benefit, and share a national interest in continuing this relationship.

Your mental model is missing A altogether and attributes the suffering of C to the undeserved largesse of B, the real unearned largesse being hidden from view in the hands of A. The relative earning gap of B and C might be reduced if A could see their way to offering a greater share of total income to C, since said total income is concentrated in the hands of A.

In different terms, you’re attributing the cross national inequality of workers incomes to the maldistribution of wages without considering how returns to capital play in understanding this maldistribution.

Berkshire Hathaway FAQ

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