The expert that she is questioning starts talking about a minimum wage of $36 an hour. Does Warren really think that the productivity of minimum wage workers has been as large as it has been for the average worker? How does she think that wages are set in the market? Does she understand that the rents that these price controls create are competed away? It is called rent-seeking by economists.
Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts
Tuesday, March 19, 2013
Elizabeth Warren stuns "Why Isn't Minimum Wage $22?"
Posted on 12:21 AM by john
The expert that she is questioning starts talking about a minimum wage of $36 an hour. Does Warren really think that the productivity of minimum wage workers has been as large as it has been for the average worker? How does she think that wages are set in the market? Does she understand that the rents that these price controls create are competed away? It is called rent-seeking by economists.
Tuesday, February 5, 2013
A note for me to remember some dumb economics: Stiglitz on inequality
Posted on 12:46 AM by john
This claim is based on the crazy argument that people don't spend all of their money. It is almost as if wealthy people are digging a hole in their back yard and burying the money there. But wealthy people's money doesn't just disappear. If they put it in the bank, it is loaned out to others.
“What sustains the American economy is consumption, and the people at the top spend on consumption a smaller fraction than those at the bottom. In fact, those at the bottom have to — to get by — spend about basically 100 percent. So when you move money from the bottom and the middle to the top, overall spending gets constrained, and that weakens the economy,” economist Joseph Stiglitz said on MSNBC's "Up with Chris Hayes" . . .
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