Originally Posted By: PandaBear
No, people are paid for how much leverage they have.
If you are working in an industry that has only one employer, or if you are a customer of a product in a monopoly, you will be paid low or pay high due to no alternative.
Intel CPU selling for $300 and cost the same as their $100 CPU is an example.
Long shoreman making more money than the UPS truck driver, or Safeway employee making more than Walmart doing the same work, is another result of leverage rather than productivity.
What you say is largely true, as labor is not exempt from supply / demand. However, regardless of the leverage that employees might have over any given employer, they do not have leverage over the employer's customers. If labor rates go too high, and these additional costs are not accepted by customers, the company will go out of business.
Just ask GM and Hostess.