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Of course there are economic reasons for wage increases with productivity. They are the same reasons that explain any other increase in prices. First, employer
by andrenth 10y ago
Of course there are economic reasons for wage increases with productivity. They are the same reasons that explain any other increase in prices.
First, employers don't want to lose their more productive employees, and they have to compete with other employers offering jobs at higher pays. Second, once productivity rises, employers increase their earnings and can therefore hire more. This creates more demand for employees, and the price of work rises.
It's in fact the view that companies should be "afraid" that create regulations and restrictions that are usually what's responsible for reduction of wages and quality of life in general for workers.
See also: http://www.heritage.org/research/reports/2013/07/productivity-and-compensation-growing-together http://www.heritage.org/research/reports/2013/07/productivit...
Finally, I find it really unbelievable that someone can claim in a serious conversation that the US have anything remotely similar to "unbridled capitalism".