Future of Keynesianism

Ingrid Multhopp zippycat at erols.com
Wed Jun 24 10:25:47 PDT 1998

Rakesh Bhandari wrote:

> I also agree with Bill M. about the additional beneficial potential for
> higher wages as a policy tool to discipline dirty and inefficient firms.

I've always thought that was a persuasive argument, and as an economist maybe you can explain something that's long confused me. Is it just my imagination or don't some of the same neoclassical economists who ballyhoo the benefits of downsizing in the name of efficiency and higher productivity (a rising tide raising all boats and all that) also argue against raising the minimum wage, which clearly rewards inefficiency? Or do we just get to hear generally the arguments of those neoclassicists who support the American model of efficiency and high employment? As always, please excuse my naiveté.



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