Marxist theory of wages refuted, part 1

http://www.youtube.com/watch?v=rBapzaT_vlk

Great explanation of the Marxist conception of wages

In short, the Marxist theory of wages could only even hope to be true in a monopsonistic labor market. Typically, thanks to the industrial revolution and the rise of large financial institutions (banks, investment funds, stock, bond, and commodities markets), monopolies and monopsonies are impossible because any investment fund could start a business in any given industry, even ones which require enormous economies of scale. Or, alternatively, a large business in one industry could start a daughter company in another industry.

That said, the following thought experiment (assuming something like pure competition) show that wages will invariably tend towards productivity.

That said, it is my contention (to be defended at another time) that businesses, to survive, will earn profit margins on investment that are slightly above the real rate of interest. This is because any individual business has to bid capital away from alternative uses (which is to say the bond markets) in order to survive.

If any one business earns, say, a 50% rate of return on investment, any newcomer can start a business to undercut that business

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[brucewallace2]

Uuuuum? What is Marx's theory of wages?

[Tr3xKuro]

Is it just me or is this video quiet as hell?