3 ms·
people and most of all business owners, don't like to be coerced to accept higher market price like that, if the work efficiency and quality of work did not imp
by blfr 5y ago
people and most of all business owners, don't like to be coerced to accept higher market price like that, if the work efficiency and quality of work did not improve
This is a very good observation. And smaller business owners often really don't get the increases in efficiency because they skimp on tools and aren't great managers. So it's a double whammy of increasing costs and not getting the increase of efficiency that larger companies enjoy.
Basically, they're on the receiving end of Baumol's cost disease.
And because more expensive labor forces increases in efficiency (more tech, better organization), cheap labor is by far the worst drug for the economy, covering up for stagnation and exploitation.