Twisting Econ

Twisting Econ

Wednesday, October 9, 2013

post lesson 20/pre lesson 21

Folks,

for next time:
  1. Read BE 499-507 (this reading should help you complete #2)
  2. Complete the Comparative Advantage worksheet located here K:\DF\DFEG\Economics\Econ201\Fall 2013\Balser\Block B - Trade Game
  3. Check out what country you've been assigned via the excel file in the same location (we may have a quiz on this)
I dont have any specific journal question for this reading

Last time we discussed basically the issues inherent messing with wages in any variety of ways. Just like prices, wages reflect something about scarcity and alternative uses and even with very GOOD intentions, policies to change this reality often end up with POOR outcomes. Many times such policies even hurt those who it was specifically intended to help. So Job security legislation normally hurts the average unemployed worker, minimum wages actually hurt the poor and unskilled the most, and unions or cartels often result in job lossses for union members, and job safety legislation results in unhappy workers!

as we move into trade and macroeconomics we can see many well intended arguments about "sweatshops," outsourcing, job protection, and explotation in the public arena.

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