We live in a nominally
private-enterprise economy, so it should strike the ear as odd to hear
Obama acknowledge that it’s not a private-enterprise economy at all,
much less a free-enterprise economy. What we have is an economy
dominated by an alliance of politicians and well-connected, mostly
corporate, interests.
Obama of course was calling
on Congress to raise the minimum wage from $7.25 to $10.10 an hour. But
the Bureau of Labor Statistics says that only 4.7 percent of hourly
workers made the minimum wage or less in 2012, so those 3.6 million
people hardly constitute “America.”
Can Congress give those workers a raise? No, it can’t.
As economists say, “Demand
curves slope downward.” This means simply that when the price of
something rises, the quantity demanded (other things equal) falls. You
know this: You are likely to buy fewer oranges or go to the movies less
often when the price rises. This doesn’t mean no one will continue to
buy their usual quantity (and thus give up something else), but many
people will curtail their purchases. It’s called economizing.-http://www.suntimes.com/news/otherviews/25425770-452/congress-cant-give-workers-a-raise.html
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