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With the machine, less workers would be required, so all other things remaining equal, the wages should fall because of supply and demand (assuming the machine

With the machine, less workers would be required, so all other things remaining equal, the wages should fall because of supply and demand (assuming the machine doesn't need rare skills to operate). Of course, as you say, it could work the other way, and working could become more valuable because one worker could generate more returns. But that requires there to be more demand for everything. Like, say, people eat only potatoes, and all work 8 hours per day to harvest just enough potatoes for everyone. If a machine could do their work, and they couldn't think of anything else to do, there would still be the same amount of potatoes, but less work to do.

benj111 7y ago
I was trying to highlight that theres your value to your employer, which is kind of divorced from your pay. And the value of the job to you, which is your pay. Could your pay go down in the example? Theoretically yes, in practice we see the opposite. Economic development couldn't happen if it did. Although I suppose short term dislocations could lead to lower pay in the short term, before increasing long term? Don't forget 'progress' is people increasing productivity. In a world where everyone has to work full time digging potatoes, that's all anyone has. If it only takes 1 member of the group to dig potatoes, that frees the other members to discover science, religion, chips. We are in a situation now where a fraction of the population work in food production, but we all have jobs and more wealth than potato growing us could possibly imagine. That added productivity doesn't disappear, in our earlier example the owner of the means of production has captured all the value that I didn't get from it. He has to do something with it. Even if he puts it in the bank, that's possible seed money for a venture that ends up employing my 9 ex workmates. Also don't forget that the one potato digger won't want to dig potatoes all day whilst everyone else sits around. If there's no reason to dig more he'll dig enough for himself and take the rest of the day off. Now you could entice him to dig for you in exchange for beans, because you know he doesn't like picking beans, and as you don't like digging potatoes. And of course I could offer to trade apples...

benj111 7y ago

I was trying to highlight that theres your value to your employer, which is kind of divorced from your pay. And the value of the job to you, which is your pay. Could your pay go down in the example? Theoretically yes, in practice we see the opposite. Economic development couldn't happen if it did. Although I suppose short term dislocations could lead to lower pay in the short term, before increasing long term? Don't forget 'progress' is people increasing productivity. In a world where everyone has to work full time digging potatoes, that's all anyone has. If it only takes 1 member of the group to dig potatoes, that frees the other members to discover science, religion, chips. We are in a situation now where a fraction of the population work in food production, but we all have jobs and more wealth than potato growing us could possibly imagine. That added productivity doesn't disappear, in our earlier example the owner of the means of production has captured all the value that I didn't get from it. He has to do something with it. Even if he puts it in the bank, that's possible seed money for a venture that ends up employing my 9 ex workmates. Also don't forget that the one potato digger won't want to dig potatoes all day whilst everyone else sits around. If there's no reason to dig more he'll dig enough for himself and take the rest of the day off. Now you could entice him to dig for you in exchange for beans, because you know he doesn't like picking beans, and as you don't like digging potatoes. And of course I could offer to trade apples...