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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: grusum who wrote (35286)	8/7/2010 10:03:24 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 103300

I see, okay... now, what does this have to do with the question regarding States being part of a union? GZ

To: grusum who wrote (35286)	8/7/2010 10:05:41 PM
From: John	Read Replies (1) \| Respond to of 103300

the more efficient the labor, the more it can get done. the more it can get done, the more value it has. Not necessarily. It seems that your scenario assumes that demand always increases. That is not realistic. The concept of diminishing returns must also be considered. Assume the following... A company hires two research analysts for 100K per year for each analyst. Within a short period of time, one of the researchers develops the ability to perform the functions and tasks of both research analyst positions. The demand for products and services related to the position remains static over time. The company realizes all of this and raises the salary of the "efficient" analyst by 20 percent and terminates the "inefficient" position for a net savings of 80K per year. What happened? 1. The company saved 80K per year with no change in demand or product/service output. 2. The "efficient" analyst received a raise of 20 percent. 3. The "inefficient" analyst was terminated. The improvements in efficiency cost him 100 percent of his salary; 80 percent to the company and 20 percent to his former peer.