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How much of the national output should flow to labour vs how much should flow to capital owners and the government is an age old discussion, all three stake holder groups always want more, the truth is unless actual productivity and out put rises then no group can take more with out the other groups taking less.

It’s interesting that 250 years ago Adam smith wrote about this same topic, his discussion on it was measured in Oats, he was basically saying that to keep the British economy going each worker had to be paid enough pounds of oats a year that he could feed himself and his family and have enough oats left to trade for clothing etc.

His basic point was that there is a basic level of pay that the working class requires to support itself, natural forces should always eventually keep things in line with this, over time workers expectations have risen as the increased out put caused by increased capital intensity has been shared with the working class, but there is limits to how much of the pie workers should expect, because if they take to much, then capital investments diminish and over all output will drop causing everyone to suffer.

<blockquote data-quote="Value Collector" data-source="post: 1184502" data-attributes="member: 57577">How much of the national output should flow to labour vs how much should flow to capital owners and the government is an age old discussion, all three stake holder groups always want more, the truth is unless actual productivity and out put rises then no group can take more with out the other groups taking less.It’s interesting that 250 years ago Adam smith wrote about this same topic, his discussion on it was measured in Oats, he was basically saying that to keep the British economy going each worker had to be paid enough pounds of oats a year that he could feed himself and his family and have enough oats left to trade for clothing etc.His basic point was that there is a basic level of pay that the working class requires to support itself, natural forces should always eventually keep things in line with this, over time workers expectations have risen as the increased out put caused by increased capital intensity has been shared with the working class, but there is limits to how much of the pie workers should expect, because if they take to much, then capital investments diminish and over all output will drop causing everyone to suffer.</blockquote>

[QUOTE="Value Collector, post: 1184502, member: 57577"] How much of the national output should flow to labour vs how much should flow to capital owners and the government is an age old discussion, all three stake holder groups always want more, the truth is unless actual productivity and out put rises then no group can take more with out the other groups taking less. It’s interesting that 250 years ago Adam smith wrote about this same topic, his discussion on it was measured in Oats, he was basically saying that to keep the British economy going each worker had to be paid enough pounds of oats a year that he could feed himself and his family and have enough oats left to trade for clothing etc. His basic point was that there is a basic level of pay that the working class requires to support itself, natural forces should always eventually keep things in line with this, over time workers expectations have risen as the increased out put caused by increased capital intensity has been shared with the working class, but there is limits to how much of the pie workers should expect, because if they take to much, then capital investments diminish and over all output will drop causing everyone to suffer. [/QUOTE]

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