Friday, May 15, 2015

Where Does Wage Growth Come From?

Where does wage growth come from?

Here's an answer from one of my favorite bloggers, Larry Janesky

Wage growth comes from productivity gains.  Productivity gains comes from capital investment (facilities, software, machinery, etc.)  But business owners will only make capital investments if they feel safe about the future, feel the risk is worth a potential reward and profits will not be taken away by excessive taxation, and if they have access to financing in stable financial markets.
If we don't have a safe environment for businesspeople and entrepreneurs, we don't have capital investments, innovation or wage growth for workers.  

Here's what I'd like to add
Business owners will make capital investments when they also feel safe about themselves, when they feel they can keep growing the business by making adjustments to themselves as well.

Often Larry talks about self improvement, please review his blog to read his interesting ideas

Think Daily for Businesspeople

blog@larryjanesky.com

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