Paul Krugman: And what’s wrong with rising wages, anyway? Nothing so long as they are made up of solid dollars. Unfortunately what Krugman is championing is an accounting error. A situation in which those with the least productive ability will have their labor price fixed at greater than it is worth and paid for by wealth that doesn’t exist. Which sounds all well and good until that theft of value is offset by greater unemployment, higher costs of living and a general theft of savings.
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