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Ideas Matter

Economism

  • Is this trying to say that all economics is fundamentally misleading or useless?
  • Is it possible the oversimplification of economics that matters?
  • Consider the lack of counterfactuals

Are there beneficiaries of the systematic oversimplification of economics?

  • Consider this: Is it possible that economics has a hidden value system and set of assumptions that supports certain political arguments better than others?
  • Might it be better to consider economics a way to think about difficult questions rather than find simple answers?
Is this falsifiable?

Wolfers & Zilinski on reasons higher wages might boost productivity.

https://www.piie.com/sites/default/files/publications/briefings/piieb15-2.pdf

  • Motivate employees to work harder
  • Attract more capable workers
  • Leads to lower turnover
  • Enhance quality of service & reputation
  • Reduced disciplinary problems and absenteeism
  • Devote fewer resources to monitoring
  • Workers concerned about income security perform worse at work
  • Better health & greater job satisfaction

Or is it, as labor becomes more expensive firms buy less of it

Poverty & the Working Poor

https://www.bls.gov/opub/reports/working-poor/2017/home.htm

Compensation & Productivity Gap

Wealth Inequality

Credits:

Created with an image by JAFAR AHMED - "untitled image"