Question:

How can a country increase its average labor wages ie: from $300 a month to $2000 a month.?

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How can a country increase its average labor wages ie: from $300 a month to $2000 a month.?

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  1. Significant increases in wages come only with significant increases in labor productivity.  There are three general ways to do that:  

    - improve the education and skills of the workers

    - improve the governmental (less cumbersome bureaucracy, less corruption) and physical enviroment (better transportation and infrastructure)

    - increase investment in the capital stock (through increased domestic savings and more foreign investment)


  2. By robbing from the rich and giving to the poor. You are talking about equalizing the wealth when our system depends on fluctuation.

    1. An influx of capital at the top takes time to filter down.

    2. Becoming known (having good reputation)Exports,Tourism.

    3. Decreasing the population.

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