The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
I am increasingly convinced that the low "productivity" (defined as euros of output per euro of wages or hour of work) is the result of chronic underinvestment in physical plant.
Low wages are an inefficient subsidy to management because they discourage investment needed to make best use of employee's working hours. Think of a fast food restaurant. If wages are high, things become automated. For example instead of having a fryer manned by a low wage worker, you have machines that only need to be loaded and unloaded. Same thing with filling drinks. But these things cost money. Labor saving devices only make business sense if their purchase and upkeep costs less than paying someone to do it manually.
And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by Frank Schnittger - May 23 20 comments
by gmoke - May 19 3 comments
by redstar - May 12 18 comments
by redstar - May 14 15 comments
by redstar - May 6 50 comments
by Luis de Sousa - May 1 13 comments
by talos - Apr 29 49 comments
by In Wales - May 3 1 comment
by Frank Schnittger - May 2320 comments
by gmoke - May 193 comments
by redstar - May 1415 comments
by redstar - May 1218 comments
by redstar - May 650 comments
by In Wales - May 31 comment
by Luis de Sousa - May 113 comments
by gmoke - Apr 292 comments
by talos - Apr 2949 comments
by ManfromMiddletown - Apr 245 comments
by afew - Apr 2056 comments