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paytonjjonestoday at 12:42 AM2 repliesview on HN

That's not how productivity works. It's not a zero-sum game.

If all construction workers can build houses 5% more efficiently, that's not the same as nothing changing. Depending on supply and demand, it means 5% more houses are built, or houses are 5% cheaper, or maybe 5% bigger, or some combination. Whether or not the construction workers all get a raise or 5% get fired (or both) depends on that supply and demand, but historically they often get a piece of the growing economic pie.


Replies

bruce343434today at 1:01 AM

Why would the company pay more when they can just not pay more? The only things I can see happening is they might lower prices as competition ramps up, or in general as there is more supply for the same cost.

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ragequittahtoday at 1:16 AM

See the increase in CEO wages vs the increase in worker wages over the last 20 years of you want to know where that 5% will almost always go.