I'm not familiar with the term, but wouldn't that situation have the opposite effect, driving wages down?Guardsman Bass wrote:Automation and technology makes some jobs rise in productivity, at least theoretically leading to higher wages in those jobs. Other jobs don't have productivity rises, but since costs of living often tend to go up over time, and the non-productivity-rising jobs have to pay enough to keep their people from leaving and going to do other jobs, the costs of having those jobs goes up even without productivity gains.madd0ctor wrote:Where does the infaltion drive come from?
It's a problem in Economics called "Baumol's Cost Disease".
If there's still the same number of people looking for that type of job, but fewer positions open, then the competition is fiercer among job candidates. Thus, the companies can afford to pay less, because the "job market" is saturated. Sort of like an extension of supply and demand.
I thought that was already happening with certain kinds of jobs, too.