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It took over a century for the median wage in Great Britain to return to pre-industrial levels after the first industrial revolution. > reduce the amount of l

by blix 5y ago

It took over a century for the median wage in Great Britain to return to pre-industrial levels after the first industrial revolution. > reduce the amount of labor required to do a task... leading to wages increasing. I'm not aware of this "reduced demand leads to increased prices" economic theory. Can you tell me where I can read more about it? Great Britian increased it's total output while wages fell dramatically. I'm not sure your point is supported by evidence here. How appicable are the stories of Hong Kong and Singapore to countries that aren't single cities that occupy unique geopolitical positions? Hong Kong is no longer a country. Surely this is a property of unique relationship with China. Surely many other characterisitics of Hong Kong are related to it's relationship with China.

CryptoPunk 5y ago
>>It took over a century for the median wage in Great Britain to return to pre-industrial levels after the first industrial revolution. I don't know what you're referring to, as all the graphs I've seen have shown a general upward trend in UK wages over the last three centuries. Maybe you could provide a source. What I do know is that per capita productivity, which is almost entirely a function of labor saving innovation, is strongly correlated with average and median wages, and is widely established to be the primary determinant of per capita income. >>I'm not aware of this "reduced demand leads to increased prices" economic theory. Can you tell me where I can read more about it? It doesn't reduce demand. It increases demand. Demand, in economics, is defined as purchasing power intent on consumption. As productivity increases, so does production, and with it real (inflation-adjusted) spending, as people having more goods/services with which to bid on scarce resources like labor. Here's an explanation for how automation raises wages: https://www.economicshelp.org/blog/6717/economics/the-luddite-fallacy/ https://www.economicshelp.org/blog/6717/economics/the-luddit...

by blix 5y ago

CryptoPunk 5y ago

>>It took over a century for the median wage in Great Britain to return to pre-industrial levels after the first industrial revolution. I don't know what you're referring to, as all the graphs I've seen have shown a general upward trend in UK wages over the last three centuries. Maybe you could provide a source. What I do know is that per capita productivity, which is almost entirely a function of labor saving innovation, is strongly correlated with average and median wages, and is widely established to be the primary determinant of per capita income. >>I'm not aware of this "reduced demand leads to increased prices" economic theory. Can you tell me where I can read more about it? It doesn't reduce demand. It increases demand. Demand, in economics, is defined as purchasing power intent on consumption. As productivity increases, so does production, and with it real (inflation-adjusted) spending, as people having more goods/services with which to bid on scarce resources like labor. Here's an explanation for how automation raises wages: https://www.economicshelp.org/blog/6717/economics/the-luddite-fallacy/ https://www.economicshelp.org/blog/6717/economics/the-luddit...