As we continue, Mr. Koch becomes increasingly animated. He discusses another seminal work in his collection, F.A. Harper’s 1957 “Why Wages Rise.” The book demonstrates “that wages rise not because of unions or government action, but because of marginal productivity gains–people get more money when they produce more value for other people.” Then he confides, “I was so thrilled by this revelation that I had what Maslow called a ‘peak experience.'” [WSJ]
An interesting idea that bares no relation to the facts.
This will inspire some creative flailing by the free market ideologues whose positions at my university are directly funded by Koch’s institutions. “You should measure total compensation, not just wages!” Fair enough:
Even after the Heritage Foundation jukes the stats with their patented Implicit Price Deflator, there’s still a gap (along with a humorous typo in the title — more wishful thinking?).
That gap between productivity and compensation is what’s known as “profit,” or, in some quarters, “exploitation.”
And let’s not forget that “total compensation” includes employer-covered health care, whose costs have risen astronomically in the past ten years. The current health care bill will not stem this trend.
Meanwhile, Koch has had a peak experience of another sort.