4 ms·
If productivity is increasing but not average salary, then by definition the additional wealth is being taken by the owners of capital.
by jarpschope 10mo ago
If productivity is increasing but not average salary, then by definition the additional wealth is being taken by the owners of capital.
- kortilla 10mo agoNo it’s not. If the increased productivity is realized by multiple industries, then they all compete on price and the price of their goods comes down. That means the consumers of the product capture the gains in productivity. Farmers using machinery instead of labor has meant cheaper food for everyone, not rich farmers.
- alexashka 10mo agoRight, because governments do anti-trust and ensure fair competition. We all agree. When your argument boils down to discussing fantasies in a fantasy world, you have a bright future as an economist indeed.
- kortilla 10mo agoI gave you a very concrete example that has tons of competition at every level of the stack (food supply). If you’re going to ignore it and call things a fantasy, why even bother commenting?
- jarpschope 10mo agoThis is possible in theory. I think that if we look at inflation-adjusted productivity, and inflation-adjusted average income, then that would indeed prove increasing inequality, right? I believe the chart in this link is adjusted by inflation. Showing overall the same trend: https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/