3 ms·
That worked back when employers actually had to compete for labour, or unions were strong enough to negotiate with them on equal terms. Now productivity gains g
by lmm 1y ago
That worked back when employers actually had to compete for labour, or unions were strong enough to negotiate with them on equal terms. Now productivity gains go entirely to the holders of capital.
- WalterBright 1y agoProof that employers compete for labor lies in every job where the pay exceeds minimum wage.
- TFYS 1y agoThey compete, but the level of competition has gone down and the share of income labor gets has decreased as a result.
- WalterBright 1y ago> the share of income labor gets has decreased as a result. Does it? ROI stays generally about the same. The reason is simple: highly profitable businesses attract competition, causing their prices to fall.
- TFYS 1y agoIt does, at least according to the statistics and research we have. Labor share of income has been decreasing during the last few decades. The reason is also simple: without strong interference from governments, markets have a tendency to concentrate and form monopolies. Winners are rewarded with more advantages over their competitors, and over time one or two winners will emerge and get large enough that it's near impossible to compete with them, even if the competitors can resist the urge to get rich quick by selling the business to the dominant players. Capital also has a much easier time organizing politically than the poor masses, so over time the government will also introduce policies that benefit capital over labor, as we can very clearly see.