Back when I studied economics, we “proved” in class that a minimum wage causes unemployment. But that proof depends on assuming a perfectly competitive market. Big low-wage employers like Wal-Mart have substantial market power; they can deliberately under-staff operations to force down wages. In that case, a minimum wage increase can actually create jobs–if it can be enforced.
The new Congressional Budget Office report projects that the Affordable Care Act will lead to a decline in full-time equivalent workers of 2.5 million. This is people voluntarily deciding to work less–like mothers with small children, or workers in poor health or close to retirement. That should mean higher wages for the remaining workers.
We already have the technology necessary to attain a decent, sustainable lifestyle — technology that can create more and better jobs.
Why the 2014 State of the Union action agenda won’t take us nearly as far as we need to go.
QE is supposed to stimulate the economy by encouraging investment with low interest money. That hasn’t happened, but why? Does no one want to borrow, or do banks not want to lend?
Present-day inequality reflects the poisonous result of eroding net worth among African-American and Latino households and an exploding concentration of wealth in the top 1 percent, and within that, among our richest 400 billionaires.
Making the market “decisive” means that the Chinese government has decided to place profits before people — and even before that previously invincible talisman, economic growth.
A new kind of social disease has spread from recession in the United States to austerity in Europe to manufactured crisis in Australia. Tenured and emeritus academics should be hoisting the banner of civilization, raising the battle-cry for justice.
If Europe successfully implements a financial transactions tax (FTT), it will demonstrate that it is possible to make banks pay for the privilege of trading financial instruments like stocks, bonds, and derivatives.
This year’s fast GDP growth underlines one of the great myths of economic statistics: the myth that growth benefits everyone, or at least most people.