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When the supply of goods goes up too, the marginal cost of labour goes down or the percentace of product cost of labour is small. All of those become more and
by dtech 5y ago
When the supply of goods goes up too, the marginal cost of labour goes down or the percentace of product cost of labour is small.
All of those become more and more true (and are already true for a large class of products) as mechanization and automation increases.
- simonh 5y agoThose things are happening anyway. They might reduce the magnitude of the effect, but prices will still go up as wages go up. Also as automation increases productivity, leading to a wealthier economy, workers move into service sectors which are labour intensive. You can't just say, well, just reduce the amount fo labour to keep costs down. That labour still needs to be employed doing something.