Skip to main content

View Diary: A Tale of Two Economies (2 comments)

Comment Preferences

  •  UPDATE ----------- (0+ / 0-)

    Today the economist Robert Oak makes the point perfectly in a post today: Profits are Ahead of Jobs

    "Bernanke was presenting the semi-annual monetary policy report and Wall Street wants to know if they continue to bet on free money, otherwise known as quantiative easing."

    MEANWHILE: Gary Becker and others have called for a cut in the minimum wage as part of the solution to the unemployment problem. This group believes that if markets are free to adjust, then they will clear, so any problem with involuntary unemployment must be due to some impediment to full market adjustment. What is the impediment? Becker and others assert that the failure of wages to fall sufficiently fast in recessions is due in part to the presence of the minimum wage, and the wage stickiness creates an excess supply of labor (and hence, unemployment).

    If people won't go protest in the streets, then they'll end up sleeping on them instead.

    by Bud Meyers on Wed Jul 17, 2013 at 05:54:26 PM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site