Total Wealth Created
$142,500
+18.4% vs Baseline
Worker Compensation
$87,210
61.2% Total Share
Employer Net Profit
$55,290
38.8% Total Share
Active Labor Force
500 / 500
0 Automated (100% Retained)
POSITIVE-SUM EXPANSION
The total economic pie expanded by +$22,150 (+18.4%). Worker productivity and demand feedback outpaced labor cost increases.
Economic Pie Expansion
Visualizing the total economic surplus created and how it is divided between labor and capital.
Workers: 61.2%
Capital: 38.8%
Zero-Sum Test: A pure zero-sum system leaves total wealth unchanged ($120,350), strictly reducing profits by the exact dollar amount workers gain.
Multi-Round Equilibrium Breakdown
| Economic Metric |
Status Baseline ($10/hr) |
Simulated Policy Result |
Absolute Delta |
Game Theory Impact |
| Total Value of Goods Produced |
$120,350 |
$142,500 |
+$22,150 (+18.4%) |
Pie Expanded (Positive-Sum) |
| Aggregate Worker Earnings |
$70,000 |
$87,210 |
+$17,210 (+24.6%) |
Increased real consumption base |
| Employer Net Operating Profit |
$50,350 |
$55,290 |
+$4,940 (+9.8%) |
Profit Grew via Higher Volume |
| Effective Worker Productivity |
100.0 pts/worker |
117.5 pts/worker |
+17.5% |
Efficiency wage morale boost |
Why Wealth Is Not Inherently Zero-Sum
When workers receive higher compensation, multiple feedback loops occur: turnover costs plummet, morale and efficiency rise, and lower-income workers (who have a high marginal propensity to consume) spend their wages into the broader economy, generating greater aggregate revenues for businesses.
When Wage Floors Become Destructive
If a wage floor is set beyond the automation threshold without corresponding productivity gains, firms substitute human labor with capital automation, leading to disemployment, reduced aggregate purchasing power, and a shrinking total surplus.