World should focus on use of most productive per hour worked labor not most productive per dollar paid labor
The current theory of economics, has produced a world that is in a frenzy to have goods and services produced by those who produce the most units of production per dollar they are paid. This is a mistake. The world should be focused on having goods and services produced by those who produce the most per hour spent working on the job.
People need income in order to produce healthy functioning children. The emphasis on productivity per dollar paid, shifts income from those who produce the most per hour worked, to those who produce the most per dollar paid. This interferes with the reproductive ability, of those who produce the most per hour worked, this despite the fact that, reasonably speaking, the world should be focused more on the reproduction of workers who produce the most per hour worked, than on the reproduction of those who produce the most per dollar paid.
Economic circumstances that result in this or that worker being at the top in terms of productivity per dollar paid, are in a constant state of flux. Workers of a given locality may produce the most per dollar paid today, that does not mean workers in that given locality will produce the most per dollar paid thirty years from now.
Generally speaking, leaving out the factor that workers differ in terms of how their productivity per hour is effected by their pay, if you pay the workers who produce the most per hour worked the same amount as you pay the workers who produce the most per dollar paid, the workers who produce the most per hour worked will be the ones who will produce the most per dollar paid.
It makes sense to have the people of the world doing what they are most productive at per hour worked, as opposed to what they are most productive at per dollar paid.
The alternative, the society where people do not do the things they are more productive at per hour worked compared to other workers, is like a football team where the skinny wide receiver plays defensive tackle which is a position where you need strength and weight, and the slow heavy offensive tackle plays the position played by fast quick men, the defensive back position.
The alternative society where people do not do the things they are more productive at per hour worked compared to other workers, is like a society where everyone works 100 hours per week so they can live like paupers, compared to a society where everyone works 20 hours a week so they can live like kings.
When a society switches from most-productive-per-dollar-paid labor to most-productive-per-hour-worked labor, the net result quite conceivably, can be a society where despite higher prices, the income of the society relative to the prices it faces, is higher than the income of the society relative to prices given the use of most-productive-per-dollar-paid labor.
This is due to an increased amount of money being released into circulation in the economy in the form of spending. For example if the wealthy banker in town has to release $10k per year into the economy for a given service, instead of $5k, the positive effects of the increased spending by the banker for the society, will be enhanced through multiplier effects as the increased amount of money spent travels from hand to hand in the society through transactions as goods and services are bought and sold.
An individual entity in a society could be unharmed by increased cost of a given good or service that becomes produced by most-productive-per-hour-worked labor instead of most- productive-per-dollar paid labor, due to increased spending by the productive labor on goods and services sold by the given individual entity.
The switch in terms of location of production created by a switch from most-productive-per-dollar-paid labor to most-productive-per-hour-worked labor, could cause spinoff effects that are positive for the society consuming the produced goods and services, and that outweigh the increase in price caused by the change to most-productive-per-hour-worked labor, due to the increased income and sales the society experiences as a result of the change of venue in production, as producers use their wages to buy from X, who uses what he gets from producers to buy from Y, who uses what he gets from X to buy from Z, and so forth.
The increased costs that result from use of most-productive-per-hour-worked labor, are in a sense not actually a cost to society as a whole at all, because the productive labor invests and spends its money creating income and sales producing chain reactions in society.
to here True a switch in emphasis from most-productive-per-dollar-paid labor to most-productive-per-hour-worked labor, could damage certain societies, which do not contain people who excel in terms of production per hour. True, if the world encountered evil creatures who were highly productive per hour worked the world would be foolish to consider itself obligated to lose its shirt to these creatures in trade. Societies of the world need to take steps to guard against experiencing damage due to a switch to the use of most-productiveper-hour-worked labor.
Nevertheless, the general principle that the world should focus on most productive per hour worked labor instead of most productive per dollar paid labor holds. Just as economists have argued that emphasis on the use of most productive per dollar paid labor makes sense because different societies excel in different ways in terms of such productivity, so also it can be argued that different societies excel in different ways in terms of what they are more productive in per hour worked compared to other societies.
A switch in emphasis from productivity per dollar paid to productivity per hour worked, would facilitate a switch to an increased willingness to pay workers more so that their productivity per dollar paid and per hour worked can increase, based on an understanding of how the so called increased costs of labor are not in a sense really increased costs at all because when labor spends income and sales chain reactions are created. This as opposed to a petty and unkind emphasis on getting the most out of labor per dollar paid, which goes hand in hand with a foolish failure to understand how increased pay increases productivity, and, is not in a sense actually a cost to society, because of the economic chain reactions created when labor spends.
It would be foolish for all those whose work does not involve manual labor to turn their nose up at the ideas I have presented here. In the world of the economist, doctors, lawyers, policemen, scientists, are all forms of "units" of "labor" producing "units" of production of "goods and services".
@2005 David Virgil Hobbs
People need income in order to produce healthy functioning children. The emphasis on productivity per dollar paid, shifts income from those who produce the most per hour worked, to those who produce the most per dollar paid. This interferes with the reproductive ability, of those who produce the most per hour worked, this despite the fact that, reasonably speaking, the world should be focused more on the reproduction of workers who produce the most per hour worked, than on the reproduction of those who produce the most per dollar paid.
Economic circumstances that result in this or that worker being at the top in terms of productivity per dollar paid, are in a constant state of flux. Workers of a given locality may produce the most per dollar paid today, that does not mean workers in that given locality will produce the most per dollar paid thirty years from now.
Generally speaking, leaving out the factor that workers differ in terms of how their productivity per hour is effected by their pay, if you pay the workers who produce the most per hour worked the same amount as you pay the workers who produce the most per dollar paid, the workers who produce the most per hour worked will be the ones who will produce the most per dollar paid.
It makes sense to have the people of the world doing what they are most productive at per hour worked, as opposed to what they are most productive at per dollar paid.
The alternative, the society where people do not do the things they are more productive at per hour worked compared to other workers, is like a football team where the skinny wide receiver plays defensive tackle which is a position where you need strength and weight, and the slow heavy offensive tackle plays the position played by fast quick men, the defensive back position.
The alternative society where people do not do the things they are more productive at per hour worked compared to other workers, is like a society where everyone works 100 hours per week so they can live like paupers, compared to a society where everyone works 20 hours a week so they can live like kings.
When a society switches from most-productive-per-dollar-paid labor to most-productive-per-hour-worked labor, the net result quite conceivably, can be a society where despite higher prices, the income of the society relative to the prices it faces, is higher than the income of the society relative to prices given the use of most-productive-per-dollar-paid labor.
This is due to an increased amount of money being released into circulation in the economy in the form of spending. For example if the wealthy banker in town has to release $10k per year into the economy for a given service, instead of $5k, the positive effects of the increased spending by the banker for the society, will be enhanced through multiplier effects as the increased amount of money spent travels from hand to hand in the society through transactions as goods and services are bought and sold.
An individual entity in a society could be unharmed by increased cost of a given good or service that becomes produced by most-productive-per-hour-worked labor instead of most- productive-per-dollar paid labor, due to increased spending by the productive labor on goods and services sold by the given individual entity.
The switch in terms of location of production created by a switch from most-productive-per-dollar-paid labor to most-productive-per-hour-worked labor, could cause spinoff effects that are positive for the society consuming the produced goods and services, and that outweigh the increase in price caused by the change to most-productive-per-hour-worked labor, due to the increased income and sales the society experiences as a result of the change of venue in production, as producers use their wages to buy from X, who uses what he gets from producers to buy from Y, who uses what he gets from X to buy from Z, and so forth.
The increased costs that result from use of most-productive-per-hour-worked labor, are in a sense not actually a cost to society as a whole at all, because the productive labor invests and spends its money creating income and sales producing chain reactions in society.
to here True a switch in emphasis from most-productive-per-dollar-paid labor to most-productive-per-hour-worked labor, could damage certain societies, which do not contain people who excel in terms of production per hour. True, if the world encountered evil creatures who were highly productive per hour worked the world would be foolish to consider itself obligated to lose its shirt to these creatures in trade. Societies of the world need to take steps to guard against experiencing damage due to a switch to the use of most-productiveper-hour-worked labor.
Nevertheless, the general principle that the world should focus on most productive per hour worked labor instead of most productive per dollar paid labor holds. Just as economists have argued that emphasis on the use of most productive per dollar paid labor makes sense because different societies excel in different ways in terms of such productivity, so also it can be argued that different societies excel in different ways in terms of what they are more productive in per hour worked compared to other societies.
A switch in emphasis from productivity per dollar paid to productivity per hour worked, would facilitate a switch to an increased willingness to pay workers more so that their productivity per dollar paid and per hour worked can increase, based on an understanding of how the so called increased costs of labor are not in a sense really increased costs at all because when labor spends income and sales chain reactions are created. This as opposed to a petty and unkind emphasis on getting the most out of labor per dollar paid, which goes hand in hand with a foolish failure to understand how increased pay increases productivity, and, is not in a sense actually a cost to society, because of the economic chain reactions created when labor spends.
It would be foolish for all those whose work does not involve manual labor to turn their nose up at the ideas I have presented here. In the world of the economist, doctors, lawyers, policemen, scientists, are all forms of "units" of "labor" producing "units" of production of "goods and services".
@2005 David Virgil Hobbs
posted by David Virgil at 12:32 AM
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