Tuesday, July 22, 2008

Bogus Economics

A guy wrote in today's (23 July) Hong Kong Economic Journal making a case for the minimum wage:


If a worker can produce 10 dollars worth of stuff, and the worker is currently paid nine dollars. (Let's put aside the question of why the worker gets paid less than his or her contribution for argument's sake). Comes another employer, turn on his computer, check out his competitor's offer to workers, and discovers an opportunity to make profit (by paying a bit more than nine dollars this empolyer in question can bid away that worker who can produce stuff worth ten bucks and the employer in question can pocket a bit less than a dollar difference as profits). My guess is , TEN OUT OF TEN EMPLOYERS would do what they can to lure that worker to work them and in the process bids up the wage of the worker to ten bucks, his or her productivity.

Other parts of his piece are equally silly and it is not worth my time to comment on it.

Probably only the writer of the piece would not do something when he sees that kind of profit opportunity, but then again he is not a boss, otherwise he would not have that kind of time to write such silly article anyway.

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