Logically, if I know that in giving one person a raise, everyone will ask for the same raise, I just won't give anyone a raise that isn't negotiated by the entire group, which takes longer and is less likely to occur without conflict.
It actually extends to the whole market, too - if all salaries are transparent, then an RN makes x. They can't make more than that, anywhere they go. It gives a floor, sure - if they get hired, they'll get paid the same as everyone else; it just also makes a ceiling, and, I believe, may slow income growth in general.
However consumer prices have gone down over the same period. A refrigerator today costs much less in terms of labor hours than it did 30 years ago. So productivity growth has led to a rise in living standards.
> So productivity growth has led to a rise in living standards.
I love seeing this statement. It's true but the people who post it never follow up evaluating whether or not productivity growth has far out-paced the rise in living standards. If productivity growth has been exponential while the rise in living standards has been linear that's a sign that there's a problem regardless of whether or not living standards have risen.
No the assumption is that a good negotiator now has to negotiate for everyone. Because if you give a raise to him, others will come to know and ask for similar treatment.