Duncan Frissel wrote:
In the long run, employers will bid wages up to the level of discounted value of marginal product of the labor -- the present value of the future "price" of the increase in output ascribable to the added worker.<
You are right. Wages are determined by the productivity of labor. But the productivity of labor in its turn is for a large part determined by the amount of capital invested. So, there is no contradiction here.
It never ceases to amaze me that there are people in this country who actually believe that the average American in poorer now than in 1970. I can only be those who were unconscious in 1970.<
I think you're probably right again, but I never said that the average American is poorer now than in 1970. Again, no contradiction here. Bart Croughs