Quote:
Originally Posted by smooth
I was giving you a glib example of the argument in Rifkin's book of how it does work in the European model.
I should point out, however, that even in your example it doesn't "pay to be average." In your second example, worker B works almost two-thirds less time than worker A and makes only half as much. If you increased his hours to 6 (still less than 8, which worker A does), he makes as much as worker A. But the Eurpean model is that worker B prefers to take a pay cut and only work a fraction of the time.
That was the premise of me and Rifkin's argument: that people would prefer to make a wage that allows them to have more time out of the factory, rather than the goal itself being making more money.
|
The reason Europeans work less hours is because of taxes. They have higher tax rates than in the US. They take home a smaller percentage of their salary than American workers. At some point leisure time is more valuable than those extra hours of work because the compensation for those extra hours is now being paid in taxes. Its called the Laffer curve. look here.
http://www.bized.ac.uk/virtual/econo.../inctaxth5.htm