This is hilarious. Reminds me of the time when I was three and I tried to
cook my own oatmeal. When the (dry) oatmeal started to burn, I tried to
remedy the situation by adding other ingredients. Water wasn't one of them.

The situation Bruce Bartlett describes is one that economists have
ridiculed for ages as a "lump of labor fallacy." Megan McArdle had a post a
couple of weeks ago in which she defended herself from charges of
committing the lump of labor fallacy. Before that, Krugman wrote a column
expressing sympathy for the Luddites. Do we see a pattern here?


On Tue, Jun 25, 2013 at 8:20 AM, Jim Devine <[email protected]> wrote:

> New York TIMES / Economix - Explaining the Science of Everyday Life
>
>
> http://economix.blogs.nytimes.com/2013/06/25/labors-declining-share-is-an-international-problem/
> [for graph & table]
>
> June 25, 2013, 12:01 am
>
> Labor’s Declining Share Is an International Problem
> By BRUCE BARTLETT
>
> Rising real interest rates, higher prices of investment goods,
> higher depreciation rates, or even increases in corporate tax rates
> would (everything else equal) push labor’s share upward as they all
> generate increases in the cost of capital.
>
> This is important because many economists routinely assert that more
> capital investment is critical to increase productivity, which, in
> turn, will automatically lead to higher wages. While this is
> undoubtedly true up to a point, we may have passed the point where it
> is still true in economically advanced countries such as the United
> States.
>
>


-- 
Cheers,

Tom Walker (Sandwichman)
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