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That is exactly the point of the theory. Wages increase roughly at parity for equally skilled workers, regardless of their productivity, since otherwise people
by URSpider94 9y ago
That is exactly the point of the theory. Wages increase roughly at parity for equally skilled workers, regardless of their productivity, since otherwise people wouldn't choose to go into careers that under-pay. While costs decrease for goods and services that benefit from productivity increases, they stay the same for goods and services where productivity doesn't improve. Since all other costs are dropping, this has the effect of making prices go UP for hands-on services.