Skip to main content

Wages and productivity

One of our members was asked recently, “How come, when I produce so much more today, my wages never rise? I work ever longer hours, even my wife now has to work and the cost of living always rises. Who is getting the gain from my extra work? And where will it all end? When will I get a life?”

This is why: as productivity rises, earned incomes, in the form of wages and interest, fall in proportion to unearned incomes, in the form of rent. Nearly all the gain goes to rent as the return to private owners of land. One of our members provides a good explanation for the phenomenon on his blog site here