4 ms·
That other models of thought exist does not belie than an abundance of labor is the reason wages do not track productivity.
by css 6y ago
That other models of thought exist does not belie than an abundance of labor is the reason wages do not track productivity.
- PaulDavisThe1st 6y agoThere's no inherent reason why an abundance of labor would cause wages to not track productivity (either within a sector, or across an entire economy). In a culture that viewed the economy as a tool to enhance the living standards and quality for all of its members, there might be a very weak or even non-existent connection between labor availability and wages. Productivity gains could be viewed as way to either (a) reduce the amount of labor required (b) increase the amount of goods & services available, or both. Wages could remain fixed, or increase in such a scenario. This is nothing like the economic system in which we live, however; an economic system that is viewed as a playground in which which some will accumulate vast resources (and thus power) and others will not can never function the way I just described.
- css 6y ago> This is nothing like the economic system in which we live That some theoretical other economy might exist does not belie the one this article discusses correlates wages and scarcity of labor, nor does it preclude anyone from making different decisions about pricing their own labor.
- PaulDavisThe1st 6y agoThe article discusses a hypothetical timeline in which wage growth tracks productivity. So it's already in the land of hypotheticals. The question is: how far into that land is it worth going to try to illuminate the full range of the possible?
- css 6y agoThe article contrasts a hypothetical trend with the reality where labor scarcity drives prices.