Archive for the ‘Politics’ Category

How to listen to HRC’s big economics speech tomorrow

July 12th, 2015

Ariel: [about Leopold] He taught me a lot… Andrew: Like what? Ariel: Like how to listen to Mozart. Andrew: With your ears, right? –from Woody Allen’s “A Midsummer Night’s Sex Comedy” Hillary Clinton is poised to give an important speech tomorrow (Monday) explaining her diagnosis and prescriptions on the U.S. economy, with a focus on wage stagnation and… Read more

People on third base claiming they hit a triple, or marginal product theory at work…not!

July 3rd, 2015

One of the less defensible assumptions of microeconomics is that people get paid their “marginal product,” i.e., their wage equals the value of the output they produce. Thus, according to the theory, if the last worker hired is being paid an hourly wage less than the value of the firm’s output per hour, if would… Read more