what should one make of mainstream newspaper article or business page advert that reads: "_____'s (fill in city name) manufacturing workers produce $4.25 in value over and above every dollar they get in wages."
Not much, except to note that there is a difference between *marginal* value added and *average* value added, which is the statistic noted in this excerpt. Average value added of labor will generally exceed marginal. This is equivalent to the statement that total revenues of manufacturers in that city exceed total wage costs--no big surprise. And notice that "wages" may not include non-wage labor costs. Gil
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