Worker productivity rises as wages soar
As the wages soar, so does the worker productivity. As stated in the article, this could be a huge alarm for increased inflation. Is this really what our Nation needs right now, knowing that the poverty level has slightly increased. Yes, rising the wages for each person sounds like a great idea, but is it going to benefit the American people in the long run? We hope that it does, but much of the numbers that the government expected them to be at, rose very dramatically. With less output and the number of hours worked remaining the same, productivity for the quarter looked worse. The drop in output also meant that unit labor costs were higher. What do you guys think about this issue.
5 comments:
High wage may encourage workes working hard.
Increasing wages will not help people working at minimum wages in the long run. This is because due to the increase of wages jobs may become more scarce because more people are now wanting to work more, and businesses must cut back hours or number of employees in order to not suffer from these increases. If employers do not cut hours they will be forced to raise the prices of their goods that they are selling. As a result more people are going to be without jobs and the prices of goods are going to increase. This helpful idea providing people a way to make more money has ultimately hurt the lower working class more than to help.
I agree. If the wages are raised, companies will be forced to either lay off workers or at least cut their hours. They will also most likely raise the prices of their goods so that they can maintain the revenue they used to bring in to stay in business. Also, because the wage raise, inflation will go up as a result too.
This economy would be so awesome if the price never increased and the wages never increased. We would never have to worry about inflation! However, we do and it's what's really hurting Americans in the long run when wage increasing happens. The productivity will surely go down by the employees, because if they were making above the minimum before the increase, and now they are making minimum after the increase, they are going to do less work.
I agree, When wage increases happen it is hard for many people to understand that in the long run they are not actually benefiting. Many people may increase their productivity when their wages first increase but as the prices and wages begin to even out productivity will go back to the same level. Many companies begin to raise prices to accommodate the raise in wages and in the long run no one is really benefiting. This is just an ongoing cycle that in history has happened and will continue to happen throughout the years. In the long run jobs and job hours are lost and inflation occurs which hurts the consumers.
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