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If Jeff pays his workers more money, his wealth accumulation will be slower and after a while he will have less wealth than he would have had if he had paid his
by Ma8ee 6y ago
If Jeff pays his workers more money, his wealth accumulation will be slower and after a while he will have less wealth than he would have had if he had paid his workers more.
Also, if Jeff's workers have more wealth, they don't have to spend a lot of their disposable income on paying student loans or mortgages, and they will have more money to buy more stuff.
- missedthecue 6y agoIs this true? Amazon shares have had a sharp rise in the time since he raised many of their wages by 50% to $15 an hour. There seems to be little correlation, much less causation, between the amount he pays his employees and the value of the firm in which he holds interest.
- Ma8ee 6y agoYou seemed to not understand the relationship between income, spending, and wealth, so I gave a simple explanation. Of course the world is more complicated, and for example Henry Ford realised (at least according to the myth) that he had to pay his workers enough so they could buy his products, otherwise he wouldn't have enough market. But that doesn't change the fundamental relationships between income an wealth.
- missedthecue 6y agoPopular myth. Ford paid his workers that amount to outcompete competitors, not because he was in the game of charity. It's the same with Bezos, hence why Amazon lobbies for a federal $15 minimum. Many businesses will be outcompeted by Amazon with a law like that. https://www.nytimes.com/2006/04/05/business/the-economics-of-henry-ford-may-be-passe.html https://www.nytimes.com/2006/04/05/business/the-economics-of...
- Ma8ee 6y agoI had a feeling that it was apocryphal. That is why I wrote “according to the myth”.
- username90 6y agoJeff Bezos wealth hasn't been realized yet though, it is a lottery ticket people would pay a lot of money for that might create that amount of wealth in the future. It is unclear how that value would change if you changed worker pay today since it isn't really related to how much profit Amazon can extract right now. If Jeff Bezos were to sell his shares of Amazon the money wouldn't come from the pockets of his workers but from the pockets of investors. Amazon hasn't generated over a trillion in profits.