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I'm afraid that's because the wages are linked to cost of living, rather that outcome. Even software developers with some serious pricing power on today's marke
by DenisM 14y ago
I'm afraid that's because the wages are linked to cost of living, rather that outcome. Even software developers with some serious pricing power on today's market are often reluctant to switch jobs unless they can't afford something "essential", be it simple rent increase, or another Hawaii trip. I call this "tragedy of employment" - people being paid at cost rather than value.
One solution to that problem might be replacing payroll tax with another tax that is closely correlated with productivity rather than wages.