So, according to this description, the employer with the greatest ability to accede to marginal workers would be government insofar as it can always raise more money to pay its workers?
Insightful and true.
'Marginal' as in 'last, to be hired'? Or as in 'least skilled'? Or as in 'most highly paid'? All are more costly than 'average'. I think it's 'least skilled'. Is this what you mean in post 3191: The marginal worker always costs more than the average one, and so the average one will sue for a wage higher than the price of the output from the marginal worker?
Again, good thinking. Surprisingly, it could be last hired. And, it is often that last to be hired is the least skilled and gets the most pay. When this is occurring it's evidence there isn't a free market operating. Instead, there's a negotiated arrangement between two monopolists, labor union and opposition to labor union.
Perhaps, marginal cost worker means the last to settle in a general strike, or the last to hold out like in professional sports. The salary cap in the NFL forces the average player to take less when the marginal player demands more. If there was such a cap on everyone, inflation would drop to zero, if the cap was only allowed to advance at the productivity rate or less. |
