We do. We just enjoy it when wages are driven down, because as investors and owners, we are the beneficiaries of that.
If your productivity is producing $100 in value for $10 in pay, other businesses will line up to offer you more money.
If your productivity is $9, expect to get laid off.
The Law of Supply and Demand is in effect, as always.
As always, don’t confuse textbook theory with real life!
1. worker pay
2. so-called employer's social security contribution
3. stock purchase plans
4. 401k company benefits
5. employer provided health care
6. retirement plan contributions
7. paid time off
8. other employee benefits
This adds usually around 40-60% of wages.
Another factor is the increasing share of the productivity is extracted through government taxation and deficit spending. Big government is expensive.