tag:blogger.com,1999:blog-1740670447258719504.post9111664011699490685..comments2024-03-27T03:00:27.024-04:00Comments on Facts & other stubborn things: Some thoughts on the minimum wage: TheoryEvanhttp://www.blogger.com/profile/12259004160963531720noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1740670447258719504.post-72713151623724200482013-02-18T18:51:48.273-05:002013-02-18T18:51:48.273-05:00I think the higher MPC reason doesn't make muc...I think the higher MPC reason doesn't make much sense for another 2 reasons:<br /><br />1) Consumption is not the same thing as AD.<br /><br />2) Boosting AD is good when there is a demand shortfall. Not all the time.<br /><br />3) if the minimum wage did not exist, we might see more people employed at an even lower rate and therefore with an even higher MPC.PrometheeFeuhttp://prometheefeu.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-43237548240058584332013-02-18T10:37:13.894-05:002013-02-18T10:37:13.894-05:00Monopsonists face the market supply curve and only...Monopsonists face the market supply curve and only demand less than the socially optimal because it's profit maximizing. Raising the wage rate puts employers on a portion of the supply curve that is higher than the profit maximizing point but lower than the socially optimal point.Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-77951137153997255932013-02-18T10:19:11.372-05:002013-02-18T10:19:11.372-05:00"In fact, they will hire more workers assumin..."In fact, they will hire more workers assuming they are below their most efficient utilization of labor (which is a fair assumption)."<br /><br />Can you explain this part? I can see how it could have no effect on the hiring of workers, but I can't see why it would cause more to be hired.Currenthttps://www.blogger.com/profile/08645195276844244481noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-90676067570794452542013-02-18T08:46:31.147-05:002013-02-18T08:46:31.147-05:00Concerning the last point, ain't that another ...Concerning the last point, ain't that another convenient lie to push our thinking in the right direction? In reality nothing on the microeconomics level of complexion is insulated from the changes of the macro-variables, and macro is not independent of what is happening with micro either. For this reason I don't think there is a lot of sense in resolutely rejecting macro-concerns in the microeconomic questions. <br />Also, I don't think you analogy with Ford's management decisions is correct simply because Ford was only a single businessman but the proposal for the minimal wage is country- and so economy-wide. Roman P.https://www.blogger.com/profile/17384153967221979673noreply@blogger.com