[Marxism] Will Alan Krueger cause a shift in economic strategy?

Tristan Sloughter tristan.sloughter at gmail.com
Wed Aug 31 14:39:01 MDT 2011


http://online.wsj.com/article/SB10001424053111904332804576538200563908180.html

He's used facts instead of models (I know, weird for
a bourgeois economist) to show what happened due to a minimum wage increase,
to show that terrorist acts were not on the decline and that school voucher
programs do not work.

He's already been around in the Obama administration so its a stretch to say
his new position as the head of the economic advisers will cause any drastic
shift in the "right direction". The "right direction" meaning doing what is
necessary to save capitalism and stop (delay...) the move towards the next
recession (we are at 1% growth currently).

Tim Worstall in Forbes has an hilarious piece on Krueger today:

http://www.forbes.com/sites/timworstall/2011/08/31/alan-kruegers-mistake-on-the-minimum-wage/

The gist of what Tim is arguing is that while Krueger showed that in the
chain fast food restaurants there was no decline in employment due to the
minimum wage increase this shows nothing since according to Tim's models
(the very problem with economists that Krueger and others have shown and are
trying to show!) a decline in small "fast food" restaurants employment must
have occurred.

Tristan


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