Our society is geared -- at all levels -- towards minimizing expense regardless of the impact on quality or even on society in general. We're all racing to the bottom.
Giving people raises for automating things is minimizing expense.
Suppose Alice is making $40,000/year and comes up with a way to automate a third of her job. So you start paying her $50,000/year and give her some other work to do. Then Bob and Carol each find a way to automate a third of their own jobs, so now they all make $50,000 and have made Don redundant.
The company is now paying $150,000 in total salary instead of $160,000 and only has to pay insurance and provide office space for three employees instead of four. Meanwhile the workers who found ways to improve efficiency are making more money and have the incentive to do it again and get another raise.
Companies may not actually do this, but those companies are mismanaged and putting themselves at a competitive disadvantage.
It is not entirely correct to describe the social contract within a corporation as capitalist if you are salaried and compensation is indirectly tied to performance.
JohnFen|2 years ago
AnthonyMouse|2 years ago
Suppose Alice is making $40,000/year and comes up with a way to automate a third of her job. So you start paying her $50,000/year and give her some other work to do. Then Bob and Carol each find a way to automate a third of their own jobs, so now they all make $50,000 and have made Don redundant.
The company is now paying $150,000 in total salary instead of $160,000 and only has to pay insurance and provide office space for three employees instead of four. Meanwhile the workers who found ways to improve efficiency are making more money and have the incentive to do it again and get another raise.
Companies may not actually do this, but those companies are mismanaged and putting themselves at a competitive disadvantage.
imtringued|2 years ago
In capitalism, individual wealth accumulation is the primary goal, not employing and paying people living wages.
Since capitalism is a disequilibrium state, full employment is not expected. Busy work is part of the system.
orangepurple|2 years ago