This still seems to negate the point you made earlier that there are huge productivity gains and 100% of them have gone to shareholders. It doesn't seem realistic that they are using all of the new services. I feel like I'm repeating myself, so I think this is the last post.
> This still seems to negate the point you made earlier that there are huge productivity gains and 100% of them have gone to shareholders.
I didn't say 100%, I said most (re-read my comments upthread). Please don't misrepresent my words. I choose them carefully.
Greater productivity does not automatically equal a commensurate increase in products/services delivered, which seems to be the flawed assumption you are unable to get past.
Here is a concrete scenario to illustrate this.
A company makes 1M units of a product at a cost of $1/unit, and sells them for $1.50/unit. Profit/unit is $.50.
Productivity doubles, so the same million units can now be produced for $.50/unit. When sold for $1.50, profit is now $1/unit.
The $.50/unit increase in profit goes mostly to shareholders.
There are no new products, no new services.
In reality, demand varies over time, so product output varies with that, but the gains in profit mostly have gone to shareholders.
The only time they ever go to labor is when labor is in short supply or when labor organizes to demand a larger share.
