race & pay - Boushey

Charles Brown CharlesB at CNCL.ci.detroit.mi.us
Tue Sep 29 08:41:39 PDT 1998

Marx and Boushe make the same point. That classical economics is wrong when claims that unemployment must rise when wages rise.

In the article you refer us to Boushey says;

"...in their recent book about the effects of the minimum wage on employment, David Card and Alan Krueger showed that a rise in the minimum wage did not lead to decreasing employment and in some places employment actually rose. THAT CONTRADICTS THE PREDICTIONS OF TEXTBOOK NEO-CLASSICAL THEORY, WHICH DECLARES THAT ANY INCREASE IN WAGES SHOULD BE ACCOMPANIED BY A FALL IN EMPLOYMENT (emphasis added CB) "

See what I mean ?

Charles Brown

>From the market to the Marxit

>>> Doug Henwood <dhenwood at panix.com> 09/29 11:32 AM >>>
Charles Brown wrote:

>The old canard that a rise in wages forces a rise in
>unemployment is so basic that it was punctured
>classically in
>Marxism by Marx himself in "Value, Price
>and Profit".

Charles, that has nothing to do with Heather's argument, or that of the original Wage Curve theorists, Blanchflower & Oswald. What's your point?


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