Re: How does productivity turn into higher wages?

royls_at_telus.net
Date: 01/17/05 

Date: Mon, 17 Jan 2005 19:18:40 GMT

On 17 Jan 2005 08:21:29 -0800, zerge@hotmail.com wrote:

>As productivity increases in an industry or in a country, salaries tend
>to rise.
>Can anyone explain the cause-and-effect that leads to this dynamic? And
>I mean at the decision maker level: what happens in the minds of the
>employers and employees?

It's just that the increased production has to go _somewhere_.

-- Roy L