3 ms·

How about "underpay relative to the value they produce"?

• hntrader 6y ago
  That's true for every commercial transaction including every labor market transaction, and it's the reason why voluntary transactions are positive sum to both parties (ignoring the negative externalities to uninvolved third parties, and edge cases like a diminished ability to make an informed decision such as with a gambling addiction) You paid $1000 for an iPhone because you thought the subjective value that it brings you is worth $1500. If Apple was asking you for $1501, you wouldn't make the purchase. Google hired you as a dev for $300k because they think you bring more value to the table than $300k. If you were asking for more than what your value is to them, then they wouldn't hire you. Same for every other hiring arrangement including the ones Amazon makes and the ones you make in your personal life (such as if you hire a cleaner, book an uber, etc)
• bhupy 6y ago
  They produce the same value as a Sears warehouse worker, or a Circuit City warehouse worker. The reason that Amazon is successful, but Sears and Circuit City aren’t isn’t because of the warehouse workers.
• TheCoelacanth 6y ago
  That's basically what the word "employ" means in a capitalist economy.