3 comments in reply to "Something is not rotten in the state of Denmark: it’s the way they set wages."

  1. Larry Signor says:

    Something is rotten in America…a fish rots from the head down. If the 90% fail, what will the top 10% do? Revert to slavery? I thought they were supposed to be smart and self-interested. A ships’ flag will not float without a boat to carry the flag pole. Seems kind of simple to me.


  2. Fred Brack says:

    If the objective is wealthy capitalists and low-priced cotton goods, then the most efficient model is based on the factor of slavery.

    If the objective is a high standard-of-living baseline for for all citizens, then a different model must be used.


  3. mitakeet says:

    Nice! I particularly like this:

    ‘As a result of this model, a Big Mac is actually underpriced here. Its social cost is not reflected on the menu (I’d say the same thing about a gallon of gas, but that’s a different column). In Denmark and other European countries, those external costs are “internalized” in the price.’

    The fundamental problem here in the US is that we, as a society, _are_ paying the same price (likely even higher) for the burger, but through opaque taxes and fees that are primarily targeted toward the shrinking middle class. I have advocated that we eliminate corporate taxes not because of any particular fondness for low corporate taxes, but because corporate taxes are simply passed along to the consumer as yet another hidden tax/fee. If we actually paid directly the 50%+ amount of our income that directly or indirectly goes toward taxes, I bet we, as a society, would keep a lot closer eye on how it was spent. Instead we have the massively un-level corporate tax (man, does the investment in lobbyists have a huge ROI!) that acts as an anti-competitive barrier to entrants concealing our true tax rate.

    I have developed an antipathy against welfare, not because I like demonizing the poor, but because I have come to see it as yet another massive handout to the low-wage industry. Jack up minimum wage to the point where those employed no longer need public assistance and if that causes the price of a Big Mac to ‘jump’ a few percent, then at least we know where the ‘tax’ is actually going.


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