The rules of economics are similar to physics. Wishing they were otherwise will not change them. Wishing they were otherwise and acting on it will only get you killed financially. In short, economics is the transfer of time, materials and energy from one person to another. The time it takes to produce an item is part of the value of a commodity. The inherent value of the material is part of the value of the commodity. The energy put into the the item is the last part of the price/value.
Just as in physics, walking off a cliff economically will have disastrous results. Paying people more than they produce will not increase production. Especially if the workers are not paid by the item made, but by the hour worked. What will happen is the initial possible (but certainly not guaranteed) increase in production will subside.
When it comes to pay, one also needs to look at several factors:
– what is the economic benefit derived from the labor
- will an increase in pay lead to greater economic output
- can this given individual be replaced by someone else
The purpose of a business interest is to generate the greatest profit for the owner of the interest, not the happiness of the employees.