In a knowledge economy, labor economics are wrong. The classical theory of labor is that it represents recurring, variable costs. You hire people to work the iron foundry. The more iron your customers need, the more people you need to operate the bellows. The probable term of employment is long-term, though at the risk of market changes. COGS is your ore. GM is your labor. Everyone is happy as long as the world needs lots of rolled steel. Unions kick in to help workers take a more significant piece of the pie from the capitalists.
When Is a Job an Investment?
When Is a Job an Investment?
When Is a Job an Investment?
In a knowledge economy, labor economics are wrong. The classical theory of labor is that it represents recurring, variable costs. You hire people to work the iron foundry. The more iron your customers need, the more people you need to operate the bellows. The probable term of employment is long-term, though at the risk of market changes. COGS is your ore. GM is your labor. Everyone is happy as long as the world needs lots of rolled steel. Unions kick in to help workers take a more significant piece of the pie from the capitalists.