Saturday, August 27, 2011
An argument for lower wages
The Great Recession is drawing to a close as we see corporate profits go up. What's driving the uptick in financial results? Well, for starters, companies are getting more productivity out of their current employees and paying them less. I have always contended that paying workers more was a huge drag on a company. We see that bearing out in the current economy. With wages correcting back to their correct lower levels, we see companies performing better financially. This is why I like hiring as few employees as possible (preferably just one) and getting as much work out of my employees for as little pay as possible. It's a fun efficiency maximization problem that I enjoy doing for the health of my company.