[vorotato]

I don't really understand why capitalists think they can continue to pay people the same amount in the context of increased efficiency. Profits are higher than ever but the public doesn't see a dime of it. Surely it will have negative impacts on consumption down the road.

[0x27081990]

Higher profits aren't a bad thing. Higher profits mean higher taxes paid, higher profits also mean more money put into work (personal investments or by third parties, i.e. put in a bank and the bank makes their own investments or loans it). Higher profits means wealth is being generated. Contrary to popular belief, minimum wage does not distribute wealth, but rather excludes those who have less, therefore helps accumulating wealth.

Minimum wage jobs aren't meant to be a job for life. It's an entry level job. If you want higher paid jobs, you need to earn it. Minimum wage increase causes unemployment, you end helping a few at the expense of others who happen to need help the most.

[oh_sigh]

Just a guess, but is it because increase inefficiencies has nothing to do with the actual workers skills?

For example, Someone owns a fence building company, and their crew can lay 1000' of fence a day by shoveling the fence post holes. The owner spends $100,000 and invests in a couple of big power augers, which lets his crew now lay 5000' of fence a day(also, the crew is less tired at the end of the day).

The crew is now 5x as productive as they were in the past, but it is because of the capital investment of the owner, not through any intrinsic increase in productivity from the crew itself.

Who gets to capture the increase in revenue?