ny will result in increased productivity, increased profits, and increased gross national product.
Having presented his core solution in the first three pages of his text, Weitzman devotes the remainder of the book to justifying the solution and offering examples and illustrations of how his new compensation package could be implemented. Expecting resistance, he begins by examining corporate America itself and the major decisions that all companies face.
All companies must decide how much to make, how much labor to use to make it, and the price to charge. Weitzman incorporates economies of scale into his argument (11) to suggest that mass production is characterized by declining average costs over the long run. By suggesting a lower overall wage, but including employees in profit sharing strategies, there would be lower prices, more output and higher employment (21).
What Weitzman is proposing (and the source for the title of his book) is a s
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