Friday, October 21, 2011

Energy output versus wages

One reasons salaries are so low is that our nation's output is so low.  If you look at something like a steel mill or oil refinery the production is so vast, and the energy use is so vast, that the wages are huge - while still being a minor part of total costs.

In fact energy use is directly related to output obviously.. work output.  As we move to a sustainable, less energy intensive economy, our work output declines.

With less output as a society the pie to share is smaller.  A worker operating a vast machien that outputs £500 pounds of value an hour, can easily command £50 an hour in wages.

The same worker, now in a coffee shop, producing just £50 pounds an hour of output.. can command more like £5 an hour.

No comments:

Post a Comment