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Then it creates more pressure for productivity improvements. E.g. automatization. Or product price increase reduces demand. E.g. pay restaurant workers more ->
by mantas 4y ago
Then it creates more pressure for productivity improvements. E.g. automatization.
Or product price increase reduces demand. E.g. pay restaurant workers more -> less people come to more expensive restaurants -> less workers needed.
- yetihehe 4y agoIf restaurant prices were 100% worker pay, that would be true. But when you increase pay by 50%, your prices do not necessarily increase by 50% which also does not mean you will have 50% less customers. Currently owners of businesses minimise ALL expenses, but for workers, that is already at minimum. For some workers it's below a minimum which they can accept, so they don't work.