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To put it simply, labor wages relate to labor productivity. Labor productivity increases with increased investment, meaning that labor wages will increase.
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Yeah. I hear McDonalds are paying their workers a shitload, what with all the increase in productivity and all.
Productivity affects the value of labour, not its price. An increase in productivity lowers the value of labour, without lowering the atual wage. The price of labour power fluctuates acording to supply and demand of labour on the market. In a period of expansion, as, for instance the whole period of early 50s early 70s in Australia, demand exceeds supply, so the price of labour power tends to be above its value.