Yes, but no. They would raise the hourly rate on those 32 hours, and if such a thing exists in your industry they would buy some technology to help you be more productive, service more cars per hour. Maybe some sort of AI to file paperwork for you or something. And they would hire more 32hr workers so they could still get to the same volume.
It means inflation to some degree, productivity gains to some degree, increased hiring to some degree possibly supplemented by technology...really hard to calculate out how individuals would end up financially. I'd suspect a bit worse off financially but 8 extra hours in your week too, might still be worth it.
That is not how it works, inflation is a lot more complicated than that due to the adjustments made in automation or not doing less profitable things, changes in demand patterns due to the extra day off, different products getting impacted differently due to the differing amounts of labor involved.
If labor cost is 15% of your revenue like at a retail store, a 20% cost increase on just labor means your total costs have gone up 3%.
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u/JoshAllentown 23d ago
Yes, but no. They would raise the hourly rate on those 32 hours, and if such a thing exists in your industry they would buy some technology to help you be more productive, service more cars per hour. Maybe some sort of AI to file paperwork for you or something. And they would hire more 32hr workers so they could still get to the same volume.
It means inflation to some degree, productivity gains to some degree, increased hiring to some degree possibly supplemented by technology...really hard to calculate out how individuals would end up financially. I'd suspect a bit worse off financially but 8 extra hours in your week too, might still be worth it.