Labor Power¶
Squeezy: Getting on OK with the robot,
Prolius?
Prolius: Totally. I’ve doubled my hamburger
output for no extra work, and even a bit less hot-fat
splashing.
Squeezy: Great. It looks like it should pay for
itself in three months.
Prolius: The thing is though, Mr. Squeezy, as I
see it, I’m due a substantial pay rise.
Squeezy: Sorry, help me out here a minute
Prolius, why is that exactly?
Prolius: Isn’t it obvious? My productivity has
doubled.
Squeezy: Your productivity?
Prolius: No doubt about that Mr. Squeezy. I
looked it up. Labor productivity equals economic output over
employment.
Squeezy: But I thought you’d just said the extra
output is down to the robot?
Prolius: The robot doesn’t count, because it
doesn’t have a labor contract.
Squeezy: There’s a bank loan.
Prolius: We’re in the Aeon of ZIRP. Debt is free
forever now. So that’s irrelevant.
Squeezy: But what motive do I have to pay you
more?
Prolius: Please, Mr. Squeezy, don’t be
simplistic. I’m not just a worker with rapidly accelerating
productivity. Far more importantly, I’m a consumer. If you paid me
more, I could make a greater contribution to aggregate demand.
Squeezy: You’re saying, if I gave you more money,
I could get some of it back by also selling you more
hamburgers?
Prolius: You’ve got it. That’s how the economy
works.