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You're looking at aggregate values. And there's a lot going on including benefits. It's hard to tease out. But use common sense. It's not about fairness. If yo
by bko 4y ago
You're looking at aggregate values. And there's a lot going on including benefits. It's hard to tease out. But use common sense. It's not about fairness.
If you had a goose that lays golden eggs that you can sell for $100 net of costs. You'd pay up to $100 for the goose. If suddenly it started producing double the eggs you'd pay up to $200 or someone else would outbid you. The only way the goose wouldn't be able to get a higher salary is if competitors were not greedy as it's basically free money and just let the current owner profit from the goose's productivity gain
- deleted 4y ago[deleted]
- mullingitover 4y ago> If suddenly it started producing double the eggs you'd pay up to $200 or someone else would outbid you. This makes a lot of assumptions about the market being perfectly competitive, which is a bit of a stretch. The past four decades have been marked by consolidation and reduction of competition, and the largest firms have profit margins that aren't at all indicative of healthy competition.