| ▲ | rsalus 2 hours ago |
| > amount of labor being generated per person has not really changed not true, labor productivity has been steadily increasing: https://fred.stlouisfed.org/series/OPHNFB workers are simply capturing less of the economic value generated by their labor. |
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| ▲ | missedthecue an hour ago | parent | next [-] |
| Increases in labor productivity is a curious thing to think about. Do I deserve more wages for using AutoCad instead of drafting paper? - The amount I'm working hasn't increased. Still an 8 hour day. - My job honestly is easier than it used to be; certainly less menial. - Strictly speaking, the education requirement is actually lower. It's easier and a lower bar to learn to become a decent designer in AutoCad than to learn to effectively use old drafting tools (even though the formal four year engineering degree still takes four years). But it's also true that in spite of this, my output is higher. Should I capture the increased output or should the innovators of the tools? What about the firms that invest in procuring these tools and production technology? Should the customers capture the increased output through lower prices? Or should the innovators, firms, and customers all get less, and instead my wages should get bigger? |
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| ▲ | 3D30497420 an hour ago | parent | next [-] | | Salaries aren't about what someone "deserves" or "should earn". Those in control will try to capture as much of the return as possible. How much value the worker captures is based on their relative power (ability to move to a higher paying employer, scarcity of skillset, laws such as minimum wage, etc). | |
| ▲ | PaulDavisThe1st 13 minutes ago | parent | prev | next [-] | | If using autocad does indeed make you more productive, then your 8 hours per day of labor generates more value for your employer. Where the benefits of that end up is one of the most fundamental questions of politics. As you note, there are arguments for it to flow to any combination of several different groups. Deciding how much goes to each group is what politics is all about, in the end. | |
| ▲ | larkost 41 minutes ago | parent | prev | next [-] | | > Or should the innovators, firms, and customers all get less, and instead my wages should get bigger? In almost all of the cases the "innovators" are themselves workers whose share of the outcome has been dropping. And the "customers" have never gotten a piece of the profits; we are already past the point where reduced prices would have happened (competition) in this system. And I think that by "firms" you really mean some combination of executives and investors/shareholders. That is where the gains have been centralized. Do you really want to argue that management and investors deserve to have more of the gains? What have they done that makes them so much more valuable than similar groups in bygone days? | | |
| ▲ | rsalus 26 minutes ago | parent [-] | | the argument is productivity gains are increasingly driven by technological advances, which are spurred by capital investment. for example, if a company purchases software that increases their accountants productivity by 5x, should those accountants immediately be paid 4-5x more? I would contend that the accountant should not - it should flow to who bore the cost of the input (capital owners). however, if you starve labor of those gains, it destroys the consumer base that capital relies on to buy its goods and services. therefore, society requires broad wealth distribution to function, which implies some level of redistribution by the state is needed. |
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| ▲ | rwmj 39 minutes ago | parent | prev | next [-] | | Productivity is just aggregate output of the economy divided by the number of people-hours worked. You can argue about if that's a useful thing to measure or if the measurements themselves are accurate or if you should capture more of the output, but at root it's very simplistic. If you can use AutoCAD to generate more drawings than using paper which you (or your firm) sells for the same price per drawing, then your productivity did go up. Is that meaningful? Less certain. | |
| ▲ | forgotaccount3 34 minutes ago | parent | prev | next [-] | | > Should I capture the increased output You do capture the increased output by benefiting from a society where the cost to build safe buildings has drastically reduced. Just because you don't get an immediate financial benefit doesn't mean you haven't benefitted from the increased output. | |
| ▲ | jacobolus an hour ago | parent | prev | next [-] | | In practice what happens is that on average the tool-user's wages go up slightly but most of the jobs in the field are eliminated, and the resulting large profit mostly goes to managers and financiers. | |
| ▲ | limagnolia an hour ago | parent | prev | next [-] | | And many laborers have retirement accounts and pension funds that are also capital owners, so they benefit from increases in capital too. | |
| ▲ | smallmancontrov an hour ago | parent | prev | next [-] | | r>0 is not the problem, r>g is the problem, and that one's a lot less morally ambiguous. | |
| ▲ | Teever 33 minutes ago | parent | prev [-] | | Thats a good list of questions here’s another good thought provoking line of thinking: As someone trading labour for a wage should I adjust my productivity to match the tools I’m using? That is to say if I’m using CAD should I bother using the tool to raise my productivity? Or should I just match my old hand drafting productivity rates? Should I attempt to raise my productivity rates with these new tools to meet or exceed the best rates from my coworkers? What can we do to align my interests with those of my employer? |
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| ▲ | legitster an hour ago | parent | prev | next [-] |
| Fair, but the year over year growth of labor productivity has been really consistent, as has consumer prices: https://fred.stlouisfed.org/graph/?g=tjto So in terms of how much consumers are making in relation to their expenses, it's been remarkably steady this whole time. |
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| ▲ | bko 2 hours ago | parent | prev | next [-] |
| Chart goes up, but you really need to look at percent change. Over the last 25 years it's averaged about 2% observation_date OPHNFB_PC1 2000-01-01 2.99256 2001-01-01 2.58092 2002-01-01 4.27146 2003-01-01 3.68422 2004-01-01 2.97991 2005-01-01 2.18582 2006-01-01 0.99665 2007-01-01 1.58927 2008-01-01 1.30737 2009-01-01 4.07061 2010-01-01 3.15513 2011-01-01 -0.02491 2012-01-01 0.93870 2013-01-01 0.59941 2014-01-01 1.00795 2015-01-01 1.27023 2016-01-01 0.61567 2017-01-01 1.49513 2018-01-01 1.40965 2019-01-01 2.13337 2020-01-01 5.30657 2021-01-01 2.06281 2022-01-01 -1.46786 2023-01-01 2.13277 2024-01-01 2.91010 2025-01-01 2.25154 |
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| ▲ | rsalus 2 hours ago | parent | next [-] | | 2% is average. 1-1.5% is considered a slump, while anything over 2.5% is considered a boom. for instance, the post-ww2 boom (1947-1972) averaged 2.9%. at that rate of growth, a country's total output per worker doubles in roughly ~25 years. | |
| ▲ | ijidak an hour ago | parent | prev [-] | | Is this inflation adjusted? |
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| ▲ | ijidak an hour ago | parent | prev | next [-] |
| Is this inflation adjusted? |
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| ▲ | zer00eyz an hour ago | parent | prev [-] |
| The chart you're showing, absolutely reflects the reality of some of the most productive segments of our economy. Ford now makes more cars, with fewer people. Sears used to have people who took photos, laid out catalogs, opened envelopes (with checks in them).... Amazon has none of that. We replaced switch board operators, with mechanical, then digital switching. More calls routed, fewer people required. go back 45 years and "draftsmen" was a job - replaced by auto cad. All these industries have seen massive productivity. Are the people flipping burgers more productive? Plumbers? Welders? Teachers? Nurses? -- to some extent yes, because of technology but not to the same extent as the previous businesses. Anything that qualifies as "service economy" work has not seen the same gains as Ford (see: https://www.aei.org/carpe-diem/phenomenal-gains-in-manufactu... ) |
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