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That someone will get raises, assuming they are doing something in which their skills matter. A checkout cashier probably won't, because their job is a commodit
by mruts 8y ago
That someone will get raises, assuming they are doing something in which their skills matter. A checkout cashier probably won't, because their job is a commodity, i.e, it doesn't matter if they are good or bad at their job, the results will be the same. If someone has skills in which there is competition, lets say a factory workers (there is a tangible difference between the best factory worker and the worst), they will see their wages rise due to inflation. Because of inflation more investment capital will flow into the factory company, and the company will have more money to try and select the "best" factory workers. The competition for labor will then drive up the wages up the factory worker .
- mindslight 8y agoYou've laid out a long chain of handwaving causality, stated as if each link happens automatically. But the market is not fully efficient, so default states matter. What you're effectively arguing is that only the direct upsides matter, as the direct downsides will be erased by market feedback. Surely you can appreciate that the dynamics of the situation are quite different when a person has to rely on continually getting raises just for their financial situation to remain the same. Tangentially, the productivity difference between a good worker and an average worker is exactly what businesses have worked to eliminate over the past few decades - via moving intelligence to larger processes, with individuals treated as cogs. And they've been quite successful at it.