this post was submitted on 03 Dec 2023
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In the framework of the Baumol effect, a teacher is not as productive as a farmer but he may earn more. I'm talking about productivity against value.
Social value and value are not the same thing. Comparing teaching to farming makes zero sense and I think you might be misunderstanding the Baumol effect. It's talking about wages raising irrespective of productivity changes in the position because they are competing against other jobs with higher wages, as in competing for the worker.
It has nothing to do with social value, and social value has little to do with wages, unfortunately.
why would you raise wages? why would you compete when the gap is big?
Because workers dont pick the low-paid shitty job when there is jobs they can do just as easily that pay higher.
Why work with low pay in retail when you can work in a plant on a production robot after a few days of training? The plant job most likely pays more, because the productivity is higher due to automation.
Retail can't become more productive because you can't automate it, yet you have to raise wages to make workers consider retail.