How do you calculate what a janitor produces? Or a programmer? Or a school counselor? A teacher?
I have yet to see a better method of determining price than two parties agreeing on a number.
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.