Meditations and Learnings

Meditations and Learnings

Demand More, Pay More

Think about those contexts where the power dynamic seems a little funny: employer/employee, customer/waiter, shopper/Amazon. None of these is the same. Employers can criticise and punish employees, customers can be rude to waiters, and shoppers can buy from Amazon and demand a refund because they feel like it. How can we square these different circumstances? Simple: it’s all reflected in the price. Employers pay employees a salary that grants them the right to have some demands of their employees. A restaurant patron pays a premium for good service and a worker that provides it. Whenever an Amazon customer buys from their website, the price accounts for the overhead required because a portion of people return the item. If the discomfort of a job grew too much for some workers, the labour supply would drop, and the wages would rise accordingly.