Comments by "Jamiel De Abrew" (@JamielDeAbrew) on "The ChatGPT u0026 AI Layoffs Have BEGUN" video.

Customers are another important stakeholder. With competition, customers may get the same product/service for a cheaper price. Since many customers are employees, they may be able to work fewer hours. Since companies are more efficient, they can pay workers more for fewer hours work.
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Increasing efficiency helps employees get pay increases
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@Resteasy8686 please elaborate
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@irorook370 businesses report to their shareholders. This means they are pushed to increase profit. Some existing businesses and new businesses want capital from investors. Their pitch will be about higher ROI combined with lower risk. You’re right that just because a business is more efficient and can pay employees more, doesn’t mean they will. Image competition leads to these businesses using the efficiency gains to improve their product/service instead of paying employees more. To power this product/service improvement, the business would probably need to hire more employees. This would lead to more competition to hire employees and that would push upward pressure on employee pay. Now the business could just use the efficiency gains to improve their product/service without hiring additional employees. Their existing employees could just do more in the same time. This would probably lead to more profit. But even if it didn’t think of this…. Most businesses are customers too - buying products/services. Their suppliers efficiency gains could lead to businesses buying the same products/services at cheaper prices. Or better products/services at the same price. This benefit will also have to flow somewhere.
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@thisisfun887 (all else being equal) increased efficiency means an organisation should be able to deliver the same product/service at a cheaper price. Of course the organisation could choose to make efficiency improvement benefits flow elsewhere eg * higher profits * better product/service at the same price * investment elsewhere in the organisation * higher pay/bonuses for employees (including workers and/or directors)
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@filthyfinancials1622 great point.
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@susanlippy1009 small mom and pop business don’t benefit from ‘economies of scale’. Large monopolies aren’t ideal either. Ideally there should be something in between.
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@frankvee I think companies will only pass on productivity benefits to workers if competition (for workers) and/or minimum wage requires organisations to do so. Otherwise productivity benefits will flow elsewhere eg * to cheaper or better products/services if there is competition in the market * to shareholders if there isn’t competition in the market If the benefits flow to shareholders, they will most likely invest this return. This investment might lead to the creation of more jobs and also to more innovation. Alternatively this investment could just drive up prices of assets with constrained supply (land, shares etc…). Government policy and the taxation system could help to reduce this “if” voters push for it.
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@irorook370 more efficient organisations by itself doesn’t equal higher pay for workers. Less efficient organisations may lead to lower worker pay as organisations may be left with a tough choice: * pay workers less OR * go bankrupt (and in this case, all workers lose their jobs) As organisations become more efficient, society should also: * increase the minimum wage * increase occupational health and safety requirements Society should also make sure the market has enough competition. This could be through pressuring governments. This could also be through the choices people make when they spend their money. Competition from organisations wanting to hire employees can increase wages.
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