How a Different Way of Calculating in the Production Chain Can Lead to a more Equal Share for All Stakeholders

Abstract

Only a very small part of the value added in the chain goes to the worker. A simple example shows how wages at the start of the chain can be increased without leading to great price increases for the consumers at the end of the chain, by a change in calculation methodology. When price increases are measured in money instead of in percentages, every part of the chain other than the workers will continue to have the same profit as before, while the workers will gain more. The effects of doubling of wages on consumer price are shown.