"Raising the minimum wage is also one of the most vivid examples of social exclusion we have, and it further upsets the equilibrium overall, in the sense that everyone has to try harder just to meet expected outcomes. The more difficult equilibriums become for economic access, the harder it gets for a nation to convince its residents to allow immigrants."
http://marketmonetarist.com/2013/02/23/bob-murphy-on-minimum-wages-and-a-textbook-graph-to-illustrate-it/#comments
She didn't used to sound like this. Again, she wants to help poor people and those struggling but she's bought into following Sumner's macro ideas hook, line, and sinker not just on monetary policy but the supply side stuff clearly. She sounds like she's been successfully indoctrinated into a cult.
If this is what a successful reader of Sumner sounds like it's not very encouraging.
Mike,
ReplyDeleteYou need to remember where I'm coming from in this regard, as a long term unemployed individual! Just the same, after ten years of study on my own, I have become convinced that inclusivity is the way to a better future - inclusivity which means we have the flexibility to create product of every kind that people actually have the ability to access and utilize. Minimum wages, along with artificial floors of all kinds, only create product that fewer and fewer can afford, as has happened in the last 30 years.
Hi Becky! Like I said I know you are coming from a good place. I like you have been unemployed extesnively. I would say I've certainly been underemployed for 10 years-even where I've had jobs they have been beneath my degree.
ReplyDeleteI know where you're coming from. However, on this question of the minimum wage we simply disagree.
As I noted at Lars, the economists are roughly split on this and there are good studies which suggest there isn't the hit to employment that has been commonly believed.
http://www.irle.berkeley.edu/workingpapers/157-07.pdf
So we just have a genuine dissagreement from it. I was just wondering if in you understandble desire to find smoething that might actually help you-and others-maybe buy too much into Sumner.
I don't hate him believe it or not. However, I see both his strenghts and weaknesses. He would be better if he weren't so defensive about any critical points or questions.
He seems to quite dislike me though to give him some credit he doesn't ban me as other liberal sites you'd think I would find agreement on have done.
I do thikn you're a cool person. HOepfullly you understood I didn't mean this as an attack on you. I think you're just trying to find answers like I and many others are right now.
I do wonder if some trust in Market Monetarism almost like a cult.