Hacker News new | ask | show | jobs
by staplers 2085 days ago

  If nothing gets cheaper
Would anything need to get cheaper if everyone was making more money?
1 comments

It depends on why productivity is increasing. Generally speaking, the employer is pushing productivity increases (implementing better processes like assembly lines, buying equipment that lets an employee do more, etc). If the employer is pushing the increases, they need some incentive to do that.

Often that incentive is making goods cheaper, so they're more competitive. That's a huge generalization, but it makes the point that there's nothing wrong with productivity gains outpacing wages.