Milton Friedman really said higher wages make a nation prosperous?

December 18, 2013

Chicago University and Nobel-winning economist Milton Friedman, inspecting fruits of free markets.

Chicago University and Nobel-winning economist Milton Friedman, inspecting fruits of free markets. (Photo found at Crooks and Liars, with quote of Friedman’s explaining the benefits of things like that Earned Income Tax Credit)

In Free to Choose, Milton Friedman wrote:

But when workers get higher wages and better working conditions through the free market, when they get raises by firm competing with one another for the best workers, by workers competing with one another for the best jobs, those higher wages are at nobody’s expense. They can only come from higher productivity, greater capital investment, more widely diffused skills. The whole pie is bigger – there’s more for the worker, but there’s also more for the employer, the investor, the consumer, and even the tax collector.

That’s the way the free market system distributes the fruits of economic progress among all people. That’s the secret of the enormous improvements in the conditions of the working person over the past two centuries.

What would Friedman say about higher productivity and greater capital investment, an increasing pie, when the increases are denied to the worker, and the employer, and the consumer, and the tax collector?  Somehow, I think even Mr. No-government-regulation would cry, “Foul!”

Heck, that’s a good argument for raising the minimum wage, and for fixing income inequality.

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Time to raise the minimum wage

June 21, 2013

Illustration for Bloomberg News by Rand Renfrow: $15 Minimum Wage

Illustration for Bloomberg News by Rand Renfrow: $15 Minimum Wage

Robert Reich put it succinctly at his Facebook site [links added here]:

Nick Hanauer, one of the nation’s most successful businessmen, proposed yesterday that the minimum wage be raised to $15 an hour. But wouldn’t that cause employers not to hire workers who were “worth” less, and thereby lead to higher unemployment? No, says Hanauer. By putting more money into the hands of more people, it would stimulate more buying — which would generate more jobs than any jobs that might be lost. Hanauer understands that the basic reason the economy is still limping along is workers are consumers, and workers continue to get shafted, which means consumers lack the purchasing power to get the economy off the ground. A minimum wage of $15 an hour, combined with basic worker standards such as paid sick leave and a minimum of 3 weeks paid vacation per year, should all be in a national campaign for better jobs and a better economy in the 2014 election.

That’s the case, in brief.

Last March Reich said raising the minimum wage to $9/hour was a “no brainer.”

Alas, he didn’t account enough for the anti-brain lobby.

What do you think?

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Also good, an update:


Post-Valentine’s Day olla podrida

February 22, 2013

How’s the NRA going to spin this one?

Psy got more than 7 billion views on one video.  Can you help Sesame Street get to one billion, total?  It’s a better cause.  And it may frost the heck out of Sal Khan, too.

Sesame Street actually has a lot of video up for YouTube use — that is, for your use.  This is one of the most important educational sites on the entire internet. 992,469,603 total views at this moment.

Whose educational video works best, Sal Khan’s or Cookie Monsters?

U.S. Rep. Marsha Blackburn, R-Tennessee, said she doesn’t think we need an increase in the minimum wage, especially not to the $9 level President Obama asked.  She said her $2.15 minimum wage was enough . . .

Oops:

At that time, the minimum wage was $1.60, equivalent to $10.56 in today’s terms. Today’s minimum wage is equivalent to just $1.10 an hour in 1968 dollars, meaning the teenage Blackburn managed to enter the workforce making almost double the wage she now says is keeping teenagers out of the workforce.

Do Republicans ever learn history, or make the minor mathematical calculations to adjust for historic inflation?  Pretty tough to flunk history, math and economics in such a short statement.

Is there a rational reason that Wisconsin Rep. Paul Ryan’s  solutions to U.S. problems always involve economic pain to others?  Will cuts in food and health care make these 600,000 children smarter, too?

Here you go, Mittens in winter:

The Mittens in winter, by Howard Noel, via National Wildlife Federation

Caption from the National Wildlife Federation: Howard Noel’s photo of Monument Valley captures the East and West Mitten Buttes, as well as Merrick’s Butte on the right. These natural sandstone and shale structures are just a few of the world-famous geological features in Monument Valley Navajo Tribal Park, located along the Arizona-Utah state line within the Navajo Nation Reservation. The Utah resident used a Canon EOS 5D Mark II camera and a 24-105mm lens.

Where in Utah does Howard Noel hail from?  While I’ve been by these formations in winter, it was never with a camera to catch the snow.  This park is an ideal place to spend a couple of days learning landscape photography, if you’re looking for a place to try out your new camera.  Great place to be anytime, for me.

Hey, if you’re planning drive to see the Mittens, you should be aware that part of Highway 89 is out of commission due to a slump off the roadway between Flagstaff and Page, Arizona — the Navajo Reservation being as large as it is, and as unroaded as it is, when a main road goes out, detours can be spectacularly long.   Earthly Musings carries geological explanations, history and great photos.  How much detour?  This one requires a job to the east, through Tuba City, probably adding about an hour to the trip between those two cities.

The Arizona Department of Transportation says traffic will detour around the closure by using U.S. 160 and State Route 98, adding 45 miles of driving. (emphasis added here)

Meanwhile, in the rest of America? This is okay.  America is ashamed of Rush Limbaugh’s ranting, too.  Fair, no?

Why was the death toll so high in season 3 of “Downton Abbey?”  Writer Julian Fellowes explained it’s a kind of contract issue — anti-regulation types will no doubt crawl out of the woodwork to complain about government interference in the right of contract in English theatre.


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