In what dream world do you live in.
A world in which the percentage of our population required to grow sufficient food to feed our population is 1/20th of what it was a century ago, and yet we don't have 95% unemployment. Clearly the market actually does find new things for labor freed up via automation to do. Is that really a question?
The reason Auto makers make so much money is because they spent the better part of 70 years fighting for competitive wages vs profits of the industry. The wages dictate the cost of the item. You are quite literally putting the cart before the horse.
Both forces are in play. If you increase the cost of labor, you must increase the cost of the goods produced by that labor. That is because the total cost to produce a good cannot be greater than the price you sell the good for. You're saying the same thing I am.
If Labor was reflected in terms of production value then labor rates would have scaled appropriately with the rise of profits.
False. I said that the upper bounds of labor value is a function of the market value of the goods and services generated by that labor. I said nothing at all about how that value differential is divided between profit and labor costs.
Yet after a decade of sh*t economics in the US and Canada NA income rates have remained mostly stagnant on the whole. At least in comparison with the massive rise in Profits.
Which has nothing at all to do with what I was talking about.
But of course if Productivity was truly the essence of Labor and the Profits dictatory of wages, why would temporary labor be rampant across North America? Why would 1 year contract positions at marked down Union wages be the way of the future. If Labor and Wages we so harmonized with Production and Profits, in what world would hiring temporary staff at 70% starting wages fit into the equation. Certainly companies don't feel that they aren't making enough, after all profits are the highest they have ever been, certainly they don't feel they aren't producing enough after all production levels of everything are at the highest they have ever been. Or maybe they just want to make more money and pay less for the production. After all, more money in the hands of people who know how to use it better is more important for the economy. Having record profits is clearly the answer to unemployment, underemployment, poverty, and homlessness. Having record profits has clearly helped work people of social assistance and other government welfare programs, having record profits has clearly led to a sustainable workforce and national economic stability...Oh wait none of these things is true even with Corporate profits at all time ************ the real world sucks.
That's a lot of complaining about stuff I wasn't talking about. I was answering the question of why a button pusher in a service job (like fast food) gets paid less than a button pusher on a factory floor, even if both jobs are similarly demanding in terms of skill/difficulty.
That's it. You're trying to fly before you've learned to crawl. Start by understanding the basic concepts first, then we can move on to more complex ideas.
So I wonder, at what point does the fantasy economist that runs your fairy tale world come and say, ok guys we are making Twice as much as we spend on labor...its time we increase wages to give these hard workers a fair cut of the pie, also we are going to open 100's of new factories and hire some of these unemployed people, lets also start a community building project that helps ween people off assistance, after all gentlemen we are swimming in the most profits in the history of mankind. I would love to live in your fictional world of economic growths and equal wages. Especially so I could believe in your absurd notion that Profits and Productivity determine Labor and Wages.
I have never argued this. Ever. You're creating false conditions and getting way ahead of the issue at hand.
Let me ask you a question: Have you ever walked into a store, looked at an item on the shelf and then decided that you can afford to pay twice as much as the asking price, so you just give that money to the store? No? That's what's wrong with your question. No one does that. It's not about setting arbitrary "fair" prices for things. It's always about competing forces.
What force prevents the store from charging you $1000 for a loaf of bread? If you can answer that question, then you can answer the one you asked (or the one you should have asked).
In the real world jobs are being lost to automation, in the real world wages do not reflect the profits nor production, in the real world people are taking jobs at half the pay rate of others just so they can live to work. In the real world companies are at an all time high in production and profits, yet, the average pay in the US and Canada hasn't even kept up with the average Cost of living increase in the last decade.
Missing the forest for the trees.