Dismissing productivity

Unions see productivity – economically misleading – mostly only as the result of autonomous technical progress and the work performance of (bank) employees. Therefore, they demand “full wage compensation” (no loss of pay, no wage reductions). – If, as a result, wages rise above the marginal product of labor (the change in output per unit change in labor) – an employee costs the bank more than what he or she earns in terms of output, i.e., in monetary terms – the banks must rationalize, i.e., replace more employees with intelligent machines. – This, however, raises the employment threshold, i.e. the point at which banks start hiring again. – Also, in response to this “productivity whip,” banks often relocate jobs – even high-value jobs – abroad, such as to India. – See charging, outsourcing, disease management, downsizing, globalization, financial, file management, centralized, ancillary services, bank-related, insourcing, outsourcing risks. – See also Deutsche Bundesbank Monthly Report of September 2005, p. 23 (number of employees at banks in Germany, broken down by institution group), p. 36 (staff costs since 1997), Deutsche Bundesbank Monthly Report of September 2006, p. 45 ff. (effects of direct investment; textbook presentation with overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/