More accurately the pitch would be that existing methods of management and pay levels are resulting in a certain level of productivity, and that different metho

More accurately the pitch would be that existing methods of management and pay levels are resulting in a certain level of productivity, and that different methods and increased pay results in a disproportionately higher level of productivity. If spending $1/hr more per employee gives more than $1/hr in productivity increases then it is a no brainer to do. I've yet to see a hypothesis of why all these companies are sitting there, can't see this, and to spite themselves decide to behave like "wankers" and somehow decide not to get richer! In the real world things are complex. With higher value products there is definitely a benefit in management and pay increases, because your customers expect that. For example Costco does it. The value of shipping at Amazon is $0 because that is what lots of people pay. I wouldn't be surprised if the people packing Prime orders are paid more because those are more valuable customers.