SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wharf Rat who wrote (858129)5/18/2015 1:41:05 PM
From: i-node  Read Replies (2) of 1574085
 
>> That's a nice meme, but there is no connection between wages and productivity.
Why, that's just silly.

It is an economic reality that you guys consistently miss:

- Productivity is a function of several items besides labor, most notably automation which can increase productivity WHILE decreasing costs.

- Hourly compensation is a function of supply and demand, except for the floor set by the minimum wage plus other labor costs (benefits, workers comp, etc.)

So, a strong correlation between the two exists, but it isn't a LINEAR correlation and there are multiple variables at work and some of those other variables do NOT correlate positively. For example, capital expenditures on robotics correlate positively with productivity but extremely negatively with hourly compensation, since robotics reduces demand and increases supply.

You can increase the minimum wage to $40/hour if you want to. But what you CANNOT do is require employers to hire people they don't need. At least not yet.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News