Xayma said:
Ok shuter, explain how it could be matched by an increase in productivity?
Some places already operate at maximum possibile productivity, the only difference is they require more people to do that. So when individuals work harder, they need to employ less people, their net costs go down, unemployment goes up.
That's right, which would lead to an increase in people availible to work, correct?
These people can then go and get other jobs which would incrase our nations GDP. Are you saying it is better to have an uneducated and/or unproductive workforce purely so more people are in jobs in the short term, rather than everyone working to the best possibly productivity and thus new jobs and industries will also be created in which the unemployed people can fill.
Farm's are another example how there is a finite limit in productivity. You can only do so much, and they normally hire people so that everything is done in time, allowing them to keep more of their own money, won't do much at all to increase the farm's producitivity, considering the land is still finite. Even if it did the market for goods is still finite.
Amazingly I don't think the only jobs in Australia are on farms.
Yet my point sitll holds true, is it better for a farm to hire 10 lazy workers to complete the job, or hire 5 good workers who get the job done in the same amount of time? They could make sure they get the good workers by offering more money, but with our current tax system the benefit isn't that great as in the highest threshhold virutally half just gets taken in tax.
Additionally as I stated in the first reply, the 5 people could then go and get other jobs, which would help Australia's economy.
It is a similar concept to Ford's $5 work day that he had in the 1930's, almost double the standard wage at the time. He implemented this and even though the costs to make cars almost doubled, profits actually increased because the workers were more productive because they wanted to keep this job so much because it paid so well.