Originally posted by Nesster ... but satirically: at what point does business stop wanting to drive down labor costs and salaries?
I would guess it would be where there would be a loss to them; hence the limit would be where the resulting malnutrition, lack of shelter etc. would affect productivity negatively.
Of course, being hungry (or suffering in general) is a great incentive, so this would need careful balancing to maximize profit. It would probably be optimal to tune the system so that the most inefficient workers would gradually starve to death, this would provide plenty of incentive and automatically eliminate those who are or have become useless due to sickness, old age, bad attitude or whatever reason. The optimal balance would depend on how easily a worker can be replaced with a new one though; if this is easy then the productivity threshold must be higher and the starvation interval shorter (= degree of malnutrition more severe) for best results. It would be crucial to always starve some, even those that are hard to replace, to keep the morale up though.