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To: HomerBohn

Simply consider demand curves as taught in economics 101 (and beyond). If you select a higher price, the quantity demanded is less. This applies to wages also. Raise the minimum wage; get less employment of minimum wage workers. Raise union wages; get reduced employment of union workers. This is real. People just don’t want to believe it.

The examples above were done through fiat, or arbitrary orders. Let’s consider another approach, increasing worker productivity.

It makes sense to pay someone more when they are more productive. If a company is more productive, they can reduce the price of their product and sell more. Combining the productivity increase (more product per worker) with increased sales of the final product may keep employment about the same - but with an increase in wages.

Of course, increasing productivity is easier said than done. There are always companies and individuals trying to do this, with some success every year. Our wages have gone up over the centuries due to increasing labor productivity. Unions, politicians, and others claim the credit, but the real credit should go to everyone who figured out a better way to get a job done.


19 posted on 07/03/2016 4:57:47 AM PDT by ChessExpert (It's not compassion when you use government to give other people's money away.)
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To: ChessExpert

I’ve never been in a Starbucks and never will.


34 posted on 07/03/2016 5:28:35 AM PDT by HomerBohn (Liberals and Slinkys: Good for nothing but make you smile as you shove them down the stairs.)
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To: ChessExpert

“This is real. People just don’t want to believe it.”

Anyone who cannot understand that people demand less of something when the price goes up and more when the price goes down are hopelessly stupid. Water is a prime example, if water rates are low enough people will water large lawns, gardens etc. but if rates go high enough they will ration every drop, stop taking long showers and take a sponge bath even. I would buy TWO new F-150 pickup trucks tomorrow if the price dropped to one thousand each but as it is I don’t expect to ever own another NEW vehicle.


55 posted on 07/03/2016 6:27:43 AM PDT by RipSawyer (Racism is racism, regardless of the race of the racist.)
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