If someone walked in to my office, pointed at me and said "I'll do that guys job for half the price" I would wonder two things: 1) Can he do this job as well as I can? 2) If he can, why would he accept half of what I am under-payed?
because 1) Subjective answer either way. and 2) because he (potentially) gets to have a better quality of life than he currently has, with more opportunities to boot.
Sure, it isn't as easily measurable as stamping holes in license plates. But it is not impossible to evaluate performance.
It may take some time to evaluate, but I honestly feel my manager is good enough at his job to evaluate his worker's performance.
So, maybe initially, he pulls himself out of destitution with the job he 'stole' from me. Now he is just forever grateful that he doesn't have it much worse so he never wants more?
If the company gets a company man who does the job, never complains, and never asks for a raise, why would they ever hire me? The american who wants more money for the same job.