Frequently, I want to know about that why even unskilled worker like cleaner of the developed county, can buy so many products and service by doing normal working hours like 40 hours per week but the same worker of developing and least developed country, cannot buy the same quantity of products and services by working same hours. What is the reason behind this reality? In the past, I thought that it might be happened by getting low scale salary of workers but it is not true because if the salary of worker would be increased then price of all products and services will be increased then again worker cannot buy more products and services even salary has been increased main problem remains same. To find out this secret reason we can observe the economy deeply own self rather than studying any economics principle.
I want to make clearer about it through example, there is one country where 10 people have been living, they have been knitting sweaters in a traditional way by working one week per person 40 hours, they able to make 200 sweaters in this time they have got 20 sweaters each person. Next year they buy one machine for making a sweater, after using a machine, only two people able to conduct the machine and they produce within week 300 sweaters by working same 40 hours per week and other 8 people able to make 200 hats within a week by working same hours. Now they have got 30 sweaters and 20 hats each person. Every person has got more products than before. After understanding this simple example, we can conclude that if we want to more products and services, then we must increase our productivity, not a salary scale. So, all developed countries have used new technology to increase the productivity of production that’s why their worker can get more products by working the same hours. But all developing country have used traditional techniques to produce products that’s why their worker can get fewer products and service by working the same hours as a worker of developed countries. If people getting fewer products and services by working the same hours means people are in poverty, they are compelled to work hard just to get survivable goods. So we should understand that if we want to make a developed country, then we must increase our productivities, not salaries. Sometime the salary must be updated but our main focus must be increased to the productivity of production then everybody can get benefited.
Thank You For Reading.
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