4 ms·
That's not true. The system is designed to pay least cost to both capital and labor. Labor just notices it more and whinges more because of sticky prices on th
by snapplebobapple 2y ago
That's not true. The system is designed to pay least cost to both capital and labor. Labor just notices it more and whinges more because of sticky prices on their cost side, a less equal distribution of payouts because the quality of labor is far more varied than the quality of capital and the value of capital has been exploding over the last at least 5 decades as technology pushes output per worker far higher over time than output per unit of capital (because the technology is basically allowing more capital to be deployed per worker to increase worker output at a higher ratio of capital to labor).
Labor already earns 10-40% of the net income of capital (over and above what they are compensated for for their labor) because of government taxation. It's ridiculous to claim they should be getting even more of the pie or have any say beyond convincing their manager of something.
Also, this idea that a worker should be paid what they provide is stupid. They should be paid the lowest price the market will bear, the same as capital. What matters for labor's salary is not what they did but that a company is willing to pay the market clearing price for their labor set by supply and demand.