The former CEO Jay H Walder championed the marginal productivity theory which predicts that the demand for labor is downward. The most fundamental implication of this is that wage rates and levels of employment are inversely related - the higher the wage rate, the lower will be the level of employment in the company.
We did not agree then with this concept that the ‘higher the wages lead to less employment’. Walder’s calculations were flawed they singled only the blue collar employees, we wonder why he overlooked the executive, (higher, middle and lower) management. Finally the blue collar workers are skilled while those white collars you can conclude are unskilled and are on a great exorbitant six figure welfare system.
The question is can a computer substitute for those white collar? The simple answer is yes. In addition the computer is very cheap, reliable and dependable. There is no question those white collar are rising the cost of production due to their excessive high six figure wages - there should be a reduction in management cost.
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