Re:What If Andrew Yang Was Right?
by dragonwriter on Tuesday March 17, 2020 @05:26AM
(#22603156)
> This destroys incentive to invest in productivity improvements, because the gains are eaten by wages.
No, the share of returns that go to labor is constant, so productivity gains are split between labor and capital the same as returns prior to the gains are.
In the alternative, capital captures an ever greater share of the returns over time because they are incentivized to invest in those areas that creates the most return to capital.
No, the share of returns that go to labor is constant, so productivity gains are split between labor and capital the same as returns prior to the gains are.
In the alternative, capital captures an ever greater share of the returns over time because they are incentivized to invest in those areas that creates the most return to capital.