2 ms·
That's a nice thought but in reality it's not the way scarcity works in an economy. How much you pay an employee has only a tangential relation to the value th
by encoderer 17y ago
That's a nice thought but in reality it's not the way scarcity works in an economy.
How much you pay an employee has only a tangential relation to the value that employee produces for its customers (both internal and external).
Only so far as it could contribute to a cost structure that could lead to a rev model that a consumer doesn't find value in. (COULD being operative because many businesses have a few of these top-heavy roles that are absorbed elsewhere).
If you can't innovate your way out of it, and you can't scale your way out of it, you have no choice but to raise prices. If that breaks the camels back, so to speak, we have a name for that: It's called a poor business model.
This applies to materials and services as well. Scarcity in Economics 101.