Our Economic Pickle: why we must make wages increase to match productivity increases.

[econoclast]

12. Actually not

The price of labor is subject to the same forces of supply and demand as every other thing in a market economy.

Insofar as technology decreases demand for skilled labor and increases the supply of people who can do a job .... That tends to decrease the price of labor.

Example : i cant pound a nail straight. I cant saw a straight line with a circular saw. So i'd make a poor carpenter a while ago. But i can do these things well with a nail gun and radial arm saw. My wife could not swing a framing hammer all day .... But did a full day with the nail gun while building our deck. The fact that we could rent the technology meant we didn't have to hire a carpenter. Ie. decreased demand for carpenter labor