Ben Wiegold: the only way to raise real wage rates — which are unarguably more important than money wage rates, since money is only valued on the basis of the real goods it can be exchanged for — is to raise the marginal productivity of labor. What is meant by “marginal productivity” is nothing more than the relative contribution a productive factor makes to the production process, and it is increased through capital accumulation, such as the building of bigger, better machines, etc. mises.org/daily/6765/The-High-Cost-of-Minimum-Wages
Posted on: Fri, 30 May 2014 15:08:26 +0000
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