Future of Keynesianism

Wojtek Sokolowski sokol at jhu.edu
Wed Jun 24 12:25:06 PDT 1998

At 01:25 PM 6/24/98 -0400, Ingrid wrote:
>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
>wage, which clearly rewards inefficiency?

Actually, it is quite simple. All that neoclassical econo-babble can be translated into plain English as follows, without loosing much in the process: the rich will not work if they are paid too little, the poor - if they paid too much.

This, BTW, is so because the rich are 'rational' while the poor are not, (i.e. they are "traditional" as Max Weber put it in his _Protestant Ethics and the Spirit of Capitalism_).


Wojtek Sokolowski

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