Ok, so what you’re saying, I think, is that if we increase the wages, i.e., if the companies pay the workers more, somehow, tax revenue goes down, which affects pensions. I lose the plot where I inserted “somehow”. I’m missing some kind of connection there that you seem to see but I don’t.
The production of the workers labour is basically split three ways: Wage, company profit and taxes. If the workers productivity does not change, an increasing the wage is therefore going to reduce profit and/or taxes.
Ok, so what you’re saying, I think, is that if we increase the wages, i.e., if the companies pay the workers more, somehow, tax revenue goes down, which affects pensions. I lose the plot where I inserted “somehow”. I’m missing some kind of connection there that you seem to see but I don’t.
The production of the workers labour is basically split three ways: Wage, company profit and taxes. If the workers productivity does not change, an increasing the wage is therefore going to reduce profit and/or taxes.