The Invisible Hand Slaps Millennials in the Face
Google and other cool technology companies have set the employee-keep-happy standards in Silicon Valley. Games, yoga, personal time. These fit into the companies’ shareholder obligations, which despite the do-gooder pretense , always come back to profit. That’s what the invisible hand is all about, right? It’s actually in the company’s best interest to treat employees well because then the company attracts good employees and keeps them happy, which increases worker productivity, in turn increasing profitability and sales, and then more sales follow because the company can market its good reputation. But there are a few things that distinguish employees of cool tech companies from, say, those of an auto manufacturer. It’s the skills of the workers, and their choices in employment. Actually, if you want to make a complete list, you can look at the factors that create employer monopsony power : There is only one main employer in a particular region / industry. Workers have no choic...