What is wrong with this economy?
Why can't we be paid simply for what we produce?
Rather than by where we live, the people we know, where we work from, the salary negotiations years ago when we were hired, ...
Why can't we be paid simply for what we produce?
Rather than by where we live, the people we know, where we work from, the salary negotiations years ago when we were hired, ...
I have yet to see a better method of determining price than two parties agreeing on a number.
There's information asymmetry here, as the employer knows what all the other employees make.
Also, it seems that "agreeing on a number" doesn't work as Google unilaterally decides that working from home somehow changes the agreement.
But even without full knowledge (which is probably impossible to achieve and one of the functions of a market is to incorporate the various pieces of knowledge of all the participants), prices are still determined by two parties agreeing on a number, and just because Google has more power, the opposing entity is still agreeing to the new number if they continue selling their labor to Google.
This is being spun as a decrease instead of seeing that people actually have had an increase because of CoL. which no longer applies if you move.
If you agreed to $X and then move to say the Bay Area would you expect them to keep your salary the same?
Note, this doesn't always apply, for example, doctors in rural communities can sometimes make more money because they are needed and most don't want to go there.
What does that actually mean though, in concrete terms? Profit sharing?