----- Original Message ----- From: "John D. Giorgis" <[EMAIL PROTECTED]> To: "Killer Bs Discussion" <[EMAIL PROTECTED]> Sent: Saturday, March 13, 2004 5:53 PM Subject: Re: Race to the Bottom
> At 03:38 PM 3/13/2004 -0600 Dan Minette wrote: > >Right here is where I depart. The labor pool of possible employees > >increased by 49% from '57 to '80, but by only 32% from '80 to '03. (The > >participation in the work force increased 60% and 37%, respectively. > >During the first time period inequality decreased; during the second it > >increased. Not only that, but the increase was not just a transfer of > >income share from the poor to the rich, it was a transfer from everyone to > >the rich. > > I don't understand what you are driving at here. > > I am aware that inequality has increased since @1978. But what do the > different increases in the size of labor force have to do with this? It has a lot to do with it if George Borjas's work is to be accepted. Gautam and I agree with his point that the basic differences between balance in the the supply and demand of labor is behind much of the difference in inquality between the US and Germany. This is true even though German unemployment is higher than US unemployment. I think you are looking at unemployment figures to determine the balance. But, as prices change, both supply and demand changes. For example, there is a break even wage for a mother of two to work outside of the home, if the two children require day care as a result of her working. Also, a lawn service at $20/week has a far bigger market than a lawn service at $100/week. I think this basic difference is worth settling before going on. If I understand Gautam correctly, if you differ with the basic premise we agree upon, you also disagree with the gold standard for understanding the source of economic inequality. Then again, since Gautam and I managed to have a fairly spirited discussion, only to find we agree far more than we differ (and may be in full agreement), it is also possible that you agree with Borjas, and simply have a different take on it. Anyways, I think this is worth working out before continuing. Dan M. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
