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by ashtonkem
1743 days ago
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> Productivity is an input to the supply of competition, so it does more than create a ceiling, it also serves as an upward force on the floor. This is trivially disprovable. Did grocery stores increase the wages of their clerks once self checkout was a thing, or did they keep wages the same and lay off some of them? Productivity only affects wages when there’s competition for labor, not when there’s competition for jobs. When there’s competition for jobs productivity gains are captured by the company, not the laborer. > Do business leaders lobby to reduce public sector wages and benefits? They absolutely do, yes. I’m genuinely baffled how you’ve never heard this. The Chamber of Commerce crowd is always trying to shrink governments (and their tax bills), and attacking public unions is a big part of this. |
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That doesn't disprove anything. Productivity is an input to and has an effect on demand, but it's not the only factor. It doesn't need to be the only factor to matter. Lots of things matter. Economics is a complex field.