Future of Keynesianism

[Wojtek Sokolowski]

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
>minimum
>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_).

Regards,

Wojtek Sokolowski