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-   -   How does productivity in an industry lead to unemployment (https://www.askmehelpdesk.com/showthread.php?t=817707)

  • Oct 30, 2015, 09:17 AM
    Mommy2one07
    How does productivity in an industry lead to unemployment
    How does the productivity in one industry lead to an increase in the unemployment rate within that industry if wages are unable to adjust downward?
  • Oct 30, 2015, 09:24 AM
    Curlyben
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
  • Oct 30, 2015, 09:30 AM
    Mommy2one07
    My confusion begins with understanding the concept of wages adjusting downward
  • Oct 30, 2015, 09:45 AM
    Curlyben
    Well what does that imply ?
  • Oct 30, 2015, 10:38 AM
    Mommy2one07
    I don't understand why the wage would ever adjust downward. And if it does, what does that mean?
  • Oct 30, 2015, 12:11 PM
    ma0641
    I believe it should be productivity INCREASE. Then what happens, lets say new machinery to increase production. Look at the auto industry, robots mostly build cars now, not people.
  • Oct 30, 2015, 07:56 PM
    talaniman
    Quote:

    Originally Posted by Mommy2one07 View Post
    I don't understand why the wage would ever adjust downward. And if it does, what does that mean?

    Workers take a cut in pay when profits are down, to keep their job and keep the business going. Again the auto industry is an example during the economic downturn of '07.

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