So in this example, the revenue is $1100 a week per worker. If the worker does make $1000 for that time, that does spell doom.
Let's work it the other way. A typical business allocates 15-30% of its revenue to payroll. If an employee is making $1,000 a week, that means that if this widget factory was making enough to be a reasonably successful business in the US today, their revenue per worker would range from $3,333 to $6,667. This means the company would be "losing" somewhere between $667 to $1,333 a week by paying the same wages but losing 1 widget.
Overhead is not exclusively the $1,000 you pay Joe. It is also whatever else you pay to keep the factory in business and Joe working. Some of this, like electricity, will decrease when Joe is at work less.
Now if you consider that for decades the widget factories have been making more widgets, but paying the workers lower wages, we have a healthy widget empire more than capable of supporting a 4 day work week.
Examples like these are only helpful if we use realistic numbers. $1,000 a week for a worker's wages is plausible. $1,100 in revenue from that work is not.
When we were dating, my wife and I would poke our fingers in each other's mouths when the other person started yawning. It was funny, but we got tired of it really fast and made a pact not to do it anymore.
We've been together for 8 years and we still nervously side-eye each other when we yawn. If we're feeling mischievous, we will flinch towards the one yawning to scare them.
Worth noting that Michigan lets people vote on either the democratic or republican ballot, regardless of how they are registered. Lot's of people like myself chose to vote on the republican ballot against Trump because we felt confident in Biden winning. That probably put him closer to 80%.
So in this example, the revenue is $1100 a week per worker. If the worker does make $1000 for that time, that does spell doom.
Let's work it the other way. A typical business allocates 15-30% of its revenue to payroll. If an employee is making $1,000 a week, that means that if this widget factory was making enough to be a reasonably successful business in the US today, their revenue per worker would range from $3,333 to $6,667. This means the company would be "losing" somewhere between $667 to $1,333 a week by paying the same wages but losing 1 widget.
Overhead is not exclusively the $1,000 you pay Joe. It is also whatever else you pay to keep the factory in business and Joe working. Some of this, like electricity, will decrease when Joe is at work less.
Now if you consider that for decades the widget factories have been making more widgets, but paying the workers lower wages, we have a healthy widget empire more than capable of supporting a 4 day work week.
Examples like these are only helpful if we use realistic numbers. $1,000 a week for a worker's wages is plausible. $1,100 in revenue from that work is not.