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Wages - The Elephant In The Room..

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If HPCers are representative, a median of about 50k?

http://www.housepricecrash.co.uk/forum/index.php?showtopic=198214#

According to the ONS Average Earnings in 2008 were 25k, today they are 27k (Page 13)

http://www.ons.gov.uk/ons/dcp171778_335027.pdf

The 2k probably all went to banksters.

Only pay attention to median wages, not average.

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It said poor productivity growth could become entrenched unless policymakers introduced measures to “kick-start investment” and boost productivity.

If I run a company and invest to boost my workers productivity then-all other things being equal- I need less workers and so have no incentive to raise their wages. In fact if I boost their productivity enough I can even get rid of some as they will be surplus to requirements.

So why is it constantly suggested that boosting productivity alone will lead to wage increases when simple logic suggest the opposite is true? It's as if these ideas emerge fully formed from some think tank somewhere and no has even bothered to find out if they make any sense.

Sure if I boost demand and need to take on more workers that might put upward pressure on wages- but making labor more productive on it's own will not achieve this- it will achieve the opposite.

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If I run a company and invest to boost my workers productivity then-all other things being equal- I need less workers and so have no incentive to raise their wages. In fact if I boost their productivity enough I can even get rid of some as they will be surplus to requirements.

So why is it constantly suggested that boosting productivity alone will lead to wage increases when simple logic suggest the opposite is true? It's as if these ideas emerge fully formed from some think tank somewhere and no has even bothered to find out if they make any sense.

Sure if I boost demand and need to take on more workers that might put upward pressure on wages- but making labor more productive on it's own will not achieve this- it will achieve the opposite.

Demand is everything. We've had negative real interest rates for longer now than in the Great Depression but seen almost no capex growth. Businesses have no incentive to invest because there's no demand for their goods and services. As you say, if anything we're paying ourselves too much.

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Demand is everything. We've had negative real interest rates for longer now than in the Great Depression but seen almost no capex growth. Businesses have no incentive to invest because there's no demand for their goods and services. As you say, if anything we're paying ourselves too much.

That doesn't make sense if we get less money demand will go down. I think my sarcasm detector maybe on the blink.

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Demand is everything. We've had negative real interest rates for longer now than in the Great Depression but seen almost no capex growth. Businesses have no incentive to invest because there's no demand for their goods and services. As you say, if anything we're paying ourselves too much.

That doesn't make sense if we get less money demand will go down. I think my sarcasm detector maybe on the blink.

Demand was/is already massively artificially high, on back of overly inflated house prices. Wages too in many aspects/sectors.

China's imports are 11% down on last month, year-on-year. Massively tightening going on there.

Also this forum keeps quoting 'horrors' of Great Depression, without ever offering up the real advantages it had for millions of other people to get ahead, both in US and gentler depression in UK.

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