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Yeah, I suppose it would be interesting to look at the value multipliers throughout the supply chain to see if they are even or uneven. There is a difference be
by beisner 10y ago
Yeah, I suppose it would be interesting to look at the value multipliers throughout the supply chain to see if they are even or uneven. There is a difference between value of input goods and a value of output products, and workers capture some percentage of that difference as pay.. For instance, if someone who takes raw metals at $1/unit and processes them into component-ready materials at $2 per unit and are paid $0.50/unit, they're capturing 50% of the value they have created. A programmer takes software and hardware components that have some intrinsic value (perhaps not, difficult to reason about here) and processes them into software and hardware or services that have a greater intrinsic value. At large tech companies, the programmer might get a salary of $1XX,XXX, but the company might making a profit on the services that programmer created of $5XX,XXX, which only capturing 20% of the value added. I guess what I wonder is: should everyone in the pipeline for goods creation capture the same percentage of what the inherent value they've created? Or is it the nature of markets to differentiate based on scarcity of labor at each stage?