this post was submitted on 15 Dec 2025
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This is the natural tendency of capitalism. Paying workers more is less profitable, therefore companies that do so are less attractive to capital.
At the same time, to remain competitive, capital requires greater and greater investment, eg 20 years ago a grocery store needed 10 cashiers and $10,000 worth of machinery, now it needs 2 cashiers and $100,000 worth of investment to remain competitive and obtain the same revenue.
So per dollar invested, the rate of return goes down over time if the market doesn't expand.