PeakTrader.com

[administrator]

PeakTrader:

Morganovich, let me know when you figure out the difference between wages and prices.

****

Right, that’s what I expected from you – wages are prices and prices are prices.

It’s easy when everything is a price, like abundant labor at $5 an hour.

You had too many paint chips. Hit your head harder to see if something good might come out.

****

Maybe, Morg will sell you some tickets to his circus.

And, wages are more than just the price for labor. That’s why one is called wages and the other is called prices.

****

Desperate people, who want to work, may be willing to work for less, and prices don’t have to fall to make up for lower wages.

So, a decline in real wages can take place when there’s abundant labor.

****

And, while desperate people work for low wages, other people refuse to work for low wages and depend on their parents and/or government instead. Like these people:

http://research.stlouisfed.org/fred2/series/LNS11300012?cid=32449

****

Wages are more than prices.

For example, when the price of gasoline rises, you don’t get more miles per gallon.

There are incentives with wages.

****

Morganovich, if you need a gallon of gasoline, for a job, and the price doubles, it won’t work twice as hard for you.

Gasoline is to prices as labor is to wages.

You’re a waste of time, like your new supporter, William Bruce, along with your worn-out supporters, Ron and Givemefreedom.

****

Gasoline is to prices as labor is to wages, in case you don’t understand, they’re not the same.

****

William Bruce, what I mean about a waste of time is a waste of efficiency.

Ron, you still don’t understand. I gallon of gasoline is fixed and won’t respond to any motivation, even if you give it a raise or use a bigger-blow horn.

****

William, changing the subject to owners doesn’t explain the difference between a gallon of gasoline and a unit of labor.

I guess, it’s too subtle for you to see the difference, and it’s a small part of the difference.

****

There many interrelated factors, and there are books and studies how they interact. Yet, some people won’t even accept or don’t understand a simple fundamental point.

---

http://www.aei-ideas.org/2013/08/mccartney-tix-are-getting-scalped-at-below-50-of-list-price/#comments

---