You are wrong about machines.
The productivity that comes from machines isn't free productivity, it is leveraged productivity proportional to the efforts of the workers who use and maintain them. Prove me wrong if you can.
The worker gets paid for what he does.
Give him a better tool, he produces more
due to that tool. The
extra value belongs to the owner of the tool. If you give it to the worker why would the owner spend the money for the tool??
First of all you are moving the goal posts. I'm not saying give all the extra production value to the worker, I'm saying give the SAME CUT to the worker he enjoyed before. Not only does the worker get the same cut for the same effort, the managers get the same cut for putting in the SAME EFFORT they put in before too. Don't act like the owners won't benefit from this. The increased production means increased income which means increased profit. It is STILL a good decision to give your workers tools even if they have the SAME CUT. (I swear that you are being deliberately obtuse to mess with me. I know you understand economics better than this last post indicates.) Even though the cut is the same everyone is making more money!
There is always going to be a cut. There has always been a cut. There have always been tools that affect production. You keep trying to justify changing the traditional cut when NOTHING has actually changed.
But you want to sell me on the idea that upgrading the factory floor means the workers should automatically have their wages frozen. It just doesn't follow.
PS. You want to know what happens if the owner DOESN'T invest in new tools and technology that can improve their efficiency? Their company goes out of business when their more efficient competitor who invested in the new technology undercuts their prices. In a competitive environment, ignoring new tools is a death sentence for a company. They really have no choice. If the managers are too stupid to upgrade, they deserve the death of their company. (It's a shame they never seem to feel any pain from their failures with golden parachutes popping open every time a Fortune 500 manager fails.)