Monday, January 26, 2009

The True Value of Labor

The Chicago Boyz, a blog on economics, has an interesting assessment of the value of labor. I have always been of the opinion that labor had its own value, but that it was enhanced by the addition of management and capital. That is, if you are a worker, even if you have the tools of your trade, by yourself you will not be able to achieve as much as if you have other people who are working to secure future work and clients, or coordinate improvements to make the worker even more productive.
The ideas of many (like Mark T.) seems to be that management is but a parasite, sucking the productivity from the worker. The article above certainly puts another, more plausible explanation.

UPDATE: Link broken before, hopefully it's fixed now. Thanks Andy.

1 comment:

Andy B. Hammond said...

Hey Steve, the link to the article is broken but I googled it.

Great article and spot on. Being a middle management "parasite", I can attest that at even that level, labor needs direction and organization to do their work efficiently. I even understood this clearly when I was in the ranks of labor!