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To: ancient_geezer

I am not clear exactly what you are saying in this post.

Any economist will agree that changing the assumptions of a model means that the reactions of the dependent variables within it will not necessarily be the same after the change as before.

Don't know what changing the wages of employees would have to do with increasing demand for the company's product or how a choice of increasing wages vs decreasing prices is relevant to anything I have said.

Nor have I argued for any "arbitrary" actions on behalf of employers.


560 posted on 05/18/2005 3:01:18 PM PDT by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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To: justshutupandtakeit

Don't know what changing the wages of employees would have to do with increasing demand for the company's product

More money available allows one to buy more things. My wifes spending patterns are more than enough evidence of that truism.

Constant wage, but falling prices, allow a greater amount of product to be purchased, demand rising with availability of funds to increase standard of living.

Increasing wages and falling prices provide for an even greater market expansion.

or how a choice of increasing wages vs decreasing prices is relevant to anything I have said.

The response was to Your Nightmare, in regards to tax incidence commentary to you. It is my practice to address both persons engaged with a specific comment to which I frame a reply. For all except the first in the "To: field, its is a mere notice, not reply.

577 posted on 05/18/2005 6:04:42 PM PDT by ancient_geezer (Don't reform it, Replace it!!)
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