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Perhaps the global wage rate is too low?
by Colman (colman at eurotrib.com) on Tue Jun 21st, 2011 at 11:49:57 AM EST
[ Parent ]
TANSTAAFL!

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Tue Jun 21st, 2011 at 11:52:16 AM EST
[ Parent ]
TANSTAAFL sound like some sort of smorgasbord.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Tue Jun 21st, 2011 at 12:20:48 PM EST
[ Parent ]
Rijsttafel - Wikipedia, the free encyclopedia
The Indonesian rijsttafel (pr: RYST-tah-fell), a Dutch word that literally translates to "rice table", is an elaborate meal adapted by the Dutch from the Indonesian feast called nasi padang.

Prizes for what it's an anagram for.

"Really, it's just so terribly troublesome, a free European lunch"

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Thu Jun 23rd, 2011 at 07:35:12 AM EST
[ Parent ]
The global wage rate is too low for some areas (relative to their COL,) too high for some areas (relative to their productivity,) and just right for others.

Under these conditions trans-nationals can 'arbitrage' the labor costs of their goods by buying labor in low COL and wage rate areas, selling in high COL and wage rate areas.

Ever since I learnt about confirmation bias I've started seeing it everywhere

by ATinNM on Tue Jun 21st, 2011 at 12:05:38 PM EST
[ Parent ]
This arbitrage operation is what floating currencies and full employment fiscal policy are supposed to prevent, by making sure that wages equal cost of living equal productivity in any given currency zone, and dumping the residual on the money markets.

But obviously this sticks the money markets with the unenviable role of actually doing their jobs. So naturally they tend to object to that.

- Jake

Austerity can only be implemented in the shadow of a concentration camp.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Jun 21st, 2011 at 12:18:10 PM EST
[ Parent ]
And also why God invented tariffs.

Well acknowledged place tariffs can, under some circumstances, have deleterious outcomes.  It's not so well-acknowledged¹ placing tariffs too low can also have deleterious outcomes.

It would help if economists, policy advisers, and Decision Makers could spell "d-y-n-a-m-i-c f-e-e-d-b-a-c-k l-o-o-p-s" ... but let us not wish for the impossible.

¹  Generally by regulators and their "enablers" sticking their fingers in the ears and shouting, "La! La! La!  I can't hear you!"

Ever since I learnt about confirmation bias I've started seeing it everywhere

by ATinNM on Tue Jun 21st, 2011 at 02:54:09 PM EST
[ Parent ]
Tariffs are not needed simply to balance different CoL levels. The smart way to use tariffs is to compensate for hidden subsidies.

Such as subsidy-by-dead-coal-miners and subsidy-by-dumping-dioxin-in-the-river.

- Jake

Austerity can only be implemented in the shadow of a concentration camp.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Jun 21st, 2011 at 04:29:25 PM EST
[ Parent ]

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