Economic theory suggests that wages depend a good deal on the productivity of a worker, with those workers who are more productive commanding higher wages.
With unemployment at 9.7%, executives are also betting they can keep employees motivated and productive without boosting wages.
People were working longer, people were working harder, people were more productive even as their wages weren't growing.
Which means that, as long as there are competing capitalists, greedy for the profit that they can make by employing this newly more productive labour, then wages will get bid up.
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If they then start to actually use that investment in some productive way that pays wages and earns a profit, then they start to generate additional value-added from that activity, and that value-added continues to be created as long as they keep doing that productivev activity.
Because the companies leading the process are so productive, they pay high wages but do not employ many people.
And they shouldn't -- their educations equip them to do more productive work, making better wages and contributing more to the economy.
Less capital being invested, less productive labour and thus lower wages.
Thus, as productivity rises, as the profits that can be made from employing the newly more productive labour rise, so wages get bid up in order to gain access to those profits.
In the less productive east, this has caused wages to rise too fast, making many industries uncompetitive.
That means workers in the U.S. have less capital to work with, which makes them less productive, and leads to lower wages.
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Increased minimum wages price the least-productive workers out of jobs.
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We've seen, as I said yesterday, people that are working longer, working harder, that are more productive, and they're watching their wages fall.
It might also lead to higher wages for workers and more room for productive investments in the budget.
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That sharply increases incentives for all of the above productive activities, resulting in more of them, and more jobs, higher wages, and faster economic growth.
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