3 ms·

> 1) Why is the labor supply so low? Workers are not interested in the relatively low salary for relatively bad working conditions. It is not about what worker

> 1) Why is the labor supply so low? Workers are not interested in the relatively low salary for relatively bad working conditions. It is not about what workers are interested or not. They just need to earn enough to live. > 2) Why do salaries not rise? Mid-term the hard cap for salary increases is the increase in worker productivity. Salaries are not proportional to productivity and you all know it. There are people out there doing the same job with the same output but one earns more than other just because companies want to pay more for one and less for other. > 3) Why does worker productivity not rise? It does rise, but far less than inflation (about 1% p.a. for the last ten years). Mostly due to micro-optimizations of existing jobs. There are lot's of research out there showing how much worker's productivity increased but salaries didn't increase proportionally.

pengwing 5y ago
1: It's the same from an econ perspective as long as people are interested in being alive. 2: I think "same job" is the misunderstanding here. It is about your contribution to the company's gross result. Being a lumber jack at a badly run company is the not the same as being a lumber jack at a great company with economics of scale and a large distribution network. 3: If you have data, please provide it. The official OECD number for GDP per hour worked (aka productivity) back my claim of about 1% p.a. ( https://data.oecd.org/lprdty/gdp-per-hour-worked.htm https://data.oecd.org/lprdty/gdp-per-hour-worked.htm )
- rbanffy 5y ago
  > It's the same from an econ perspective as long as people are interested in being alive. A lot of people downsized during the pandemic. It turns out full time work has a cost and relaxing that has a huge benefit. Also, for a lot of us, there is remote work where we can work less time, have no commute, and live wherever the reduced income can afford a better living. I (living in Ireland) am seriously thinking about leaving Dublin (a high-cost region) and move to perhaps Galway or Mayo and just continue to work the same job.

pengwing 5y ago

1: It's the same from an econ perspective as long as people are interested in being alive. 2: I think "same job" is the misunderstanding here. It is about your contribution to the company's gross result. Being a lumber jack at a badly run company is the not the same as being a lumber jack at a great company with economics of scale and a large distribution network. 3: If you have data, please provide it. The official OECD number for GDP per hour worked (aka productivity) back my claim of about 1% p.a. ( https://data.oecd.org/lprdty/gdp-per-hour-worked.htm https://data.oecd.org/lprdty/gdp-per-hour-worked.htm )

rbanffy 5y ago
> It's the same from an econ perspective as long as people are interested in being alive. A lot of people downsized during the pandemic. It turns out full time work has a cost and relaxing that has a huge benefit. Also, for a lot of us, there is remote work where we can work less time, have no commute, and live wherever the reduced income can afford a better living. I (living in Ireland) am seriously thinking about leaving Dublin (a high-cost region) and move to perhaps Galway or Mayo and just continue to work the same job.