Is There a Tendency for Wages to Equal Productivity Under Free Enterprise? Yes.

From: C Sent: Thursday, November 09, 2017 11:03 AM To: wblock@loyno.edu Subject: Wages and labor productivity Hi, in an article (http://www.rebe.rau.ro/RePEc/rau/rseijr/SP15/RSEI-SP15-A1.pdf) you co-authored, it states, “a key economic principle: wages reflect labor productivity.” How did you reach the conclusion that wages always reflect labor productivity? Have you checked to see if there are any counterexamples? How could we determine what the labor productivity was, without knowing what the wages were, and then look at the wages to see if they did indeed reflect the labor productivity? If a concrete example would help, suppose Jerry Givens executes 62 people over a … Continue reading Is There a Tendency for Wages to Equal Productivity Under Free Enterprise? Yes.