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valrix | 1 year ago
$7.25 x 8 hours = $58 for the day. However what they create is based on output, which for most businesses, varies day by day along with their sales.
A McDonald's could sell 500 burgers in one day at one location, but only 300 at another. In this case the employee at the larger restaurant generates 2/5 more value than the employee at the smaller one, even if both can output at the same speed and quality. So, in reality, the employee at the larger restaurant is being exploited by 2/5 more than the employee at the smaller location. Which also means the employee at the smaller location is getting paid more for doing 2/5 less work than an equally capable employee.
Profits are multiplicative yet unpredictable, while labor is static and predictable.
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