Capitalism, A Worker's Best Friend?

Discussion in 'Economics & Trade' started by james M, Sep 6, 2018.

  1. james M

    james M Well-Known Member

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    This is a very tricky subject. Generally, under capitalism, when productivity increases, pay also increases regardless of who is responsible for the productivity increases. Better to be an auto worker today than 100 years ago-right?.

    Here's how it works: if companies put in robots that do the work of 100 people the companies save themselves the pay for 100 people. But, all the new money means they can afford to pay remaining workers more which they must do or lose their best workers to those who will pay them or share with them the most money possible out of their new profits. Thus, capitalism is a workers best friend, exactly the opposite of what libcommie Marxist Democrats would have you believe!
     
  2. Reiver

    Reiver Well-Known Member

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    You forgot to give a rationale for the productivity gap. Fancy having a try?
     
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  3. james M

    james M Well-Known Member

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    how does that relate to topic??? Trying to change topic because you could not understand topic?
     
  4. Reiver

    Reiver Well-Known Member

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    You referred to productivity and wages. Didn't you know? The productivity gap refers to how wages have not responded to productivity.

    It would seem you have no explanation for it.
     
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  5. james M

    james M Well-Known Member

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    gap is usually between countries. Is that what you are talking about?
     
  6. Reiver

    Reiver Well-Known Member

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    Nope. It's the gap between productivity (which should determine labour demand) and wage rates. It's used to understand why real wages have not increased despite productivity gains.
     
  7. james M

    james M Well-Known Member

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    wrong as always:
    The productivity gap is a phrase to describe a sustained difference in measured output per worker (or GDP per person employed) between one country and another. Productivity is a measure of the efficiency of factor inputs such as labour and capital.
     
  8. Reiver

    Reiver Well-Known Member

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    Wow you can copy and paste from Economics Online. My comment is quite correct. A gap exists between productivity and compensation. I've referred to that reality several times now.

    Can you explain this gap? Yes or no.
     
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  9. james M

    james M Well-Known Member

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    do you need 100 sites to teach you what productivity gap is, like you needed 100 to teach you what Smith stood for?? Slow? Old Word?
    "The productivity gap, an indicator of a country’s output capabilities, is the ratio between the productivity of a benchmark country (such as the United States) and that of a less developed economy".
     
    Last edited: Sep 6, 2018
  10. Reiver

    Reiver Well-Known Member

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    More dodge! Call it productivity-pay gap if you want. No skin off my nose. How do you account for the gap?
     
  11. pitbull

    pitbull Active Member

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    Capitalism is good for the whole community as long as it has to follow laws that restrict it.
    Otherwise it would escalate and kill the weak.
     
  12. Reiver

    Reiver Well-Known Member

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    What labour market restrictions are needed?
     
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  13. james M

    james M Well-Known Member

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    who's dodging? you used wrong term and I had to teach you what term you used meant.
     
  14. james M

    james M Well-Known Member

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    many ways! if for example libcommie govt invites 30 million illegals in to bid down wages you create an artificial gap. 1+1=2
     
  15. james M

    james M Well-Known Member

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    how would capitalism kill the weak?? You clean forgot to tell us?
     
  16. james M

    james M Well-Known Member

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    only 10001 restrictions or interventions so that we had libcommieism!!
     
  17. Reiver

    Reiver Well-Known Member

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    You're not making sense. That wouldn't account for the gap. This is about how the wages of the legally employed do not correspond to productivity criteria. Are you saying that employers use immigrant labour to generate exploitative relations?
     
  18. james M

    james M Well-Known Member

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    illegals take jobs and bid down wages to get them 1+1=2
     
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  19. pitbull

    pitbull Active Member

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    Unrestricted capitalism has no empathy. If a worker doesn't perform as intended, he will be fired. This leads to his death in a world based on money.
     
  20. Reiver

    Reiver Well-Known Member

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    So, let's get this right, you're agreeing that employers do not pay wages according to productivity criteria? Golly gosh, haven't you changed your tune!
     
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  21. james M

    james M Well-Known Member

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    how can it have no empathy when it is based on empathy?? if you don't empathetically struggle to provide the best jobs and best products you go bankrupt
     
  22. james M

    james M Well-Known Member

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    in stable capitalist economy they do but when libcommie govt interferes they might not.
     
  23. bringiton

    bringiton Well-Known Member

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    No, that's false. The Law of Rent implies that when productivity increases, land rent increases, not wages. The proof of this is easily seen in the combination of stagnant median wages and skyrocketing land values over the last 40 years. Empirical fact proves me right and you wrong.
    Better to be on welfare today than an auto worker 100ya.
    No it doesn't.
    Wrong. The increased production is all taken by the landowner, because it represents an increase in the differential in production between his land and marginal land. Google "Law of Rent" and start reading.
     
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  24. bringiton

    bringiton Well-Known Member

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    The same way it kills 12-15 million of them every year: by forcibly depriving them of the opportunity to earn a living unless they pay a landowner full market value for PERMISSION to do so.
     
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  25. pitbull

    pitbull Active Member

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    It's based only on egoism. Providing best jobs and products is for your own benefit only, not for the benefit of the community. Unlimited capitalism is a real jungle where only the strong survives. If unlimited capitalism were good, governments would be superfluous.
     

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