Re: Help with a Minimum Wage Model

From: Damien Sullivan (phoenix@ugcs.caltech.edu)
Date: Tue Apr 08 2003 - 10:02:22 MDT

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    On Tue, Apr 08, 2003 at 07:39:03AM -0700, Lee Corbin wrote:

    > one owns, any effort to remold economies into "preferred"
    > directions is harmful. The sad story of what happens when

    Do you believe there are any malignant distributions of property? Such as one
    where one person owns all the land? Or would redistribution there still be a
    violation of the sacred rights of property?

    > Keynesianism, which brought us such novel phenomena as stagflation,
    > and has now (one hopes) been completely discredited, perhaps did have

    It is my understanding that a mix of Keynesianism and monetarism is how
    economies are run today. The claims of each theory that they could give a
    desired growth rate, or a desired employment rate, are discredited. But
    their analyses of economic failure modes stand. So we control inflation with
    the money supply and try to avoid Keynesian liquidity traps. The US didn't
    really pop out of the Depression until the Keynesian-by-accident spending
    policies of WWII. Bush's talk about stimulating the economy with a tax cut is
    basically Keynesian -- get the gov't to pump in more money than it's taking
    out, to increase demand, to bring back into play idle labor and capital. (If
    there is no idle labor and capital then you'll just get inflation.)

    > individual, whereas in business and national life a lot really is
    > accomplished (amazingly) by much longer term incentives.

    Can you elaborate or support that?

    -xx- Damien X-)



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