Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (699573)	2/17/2013 2:35:45 PM
From: longnshort	Respond to of 1587779

Second, Card’s and Krueger’s method of measuring the effects of raising minimum-wages – which involves surveying employers, before and after minimum-wage increases, to gauge their reactions to higher minimum-wages – is inadequate. To explain this inadequacy I quote economist Thomas Sowell; it’s a lengthy quotation, but worthwhile to read in full: “Imagine that an industry consists of ten firms, each hiring 1,000 workers before a minimum wage increase, for an industry total of 10,000 employees. If three of these firms go out of business between the first and second surveys, and only one new firm enters the industry, then only the seven firms that were in existence both ‘before’ and ‘after’ can be surveyed and their results reported. With fewer firms, employment per firm may increase, even if employment in the industry as a whole decreases. If, for example, the seven surviving firms and the new firm all hire 1,100 employees each, this means that the industry as a whole will have 8,800 employees – fewer than before the minimum wage increase – and yet a study of the seven surviving firms would show a 10 percent increase in employment in the firms surveyed, rather than the 12 percent decrease for the industry as a whole. Since minimum wages can cause unemployment by (1) reducing employment among all the firms, (2) pushing marginal firms into bankruptcy, or (3) discouraging the entry of replacement firms, reports based on surveying only survivors can create as false a conclusion as interviewing people who have played Russian roulette.”** Sincerely, Donald J. Boudreaux Professor of Economics and Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center George Mason University Fairfax, VA 22030

To: bentway who wrote (699573)	2/17/2013 2:56:02 PM
From: i-node	2 Recommendations Read Replies (1) \| Respond to of 1587779

>> That's why Republicans everywhere hold him up as a model, and say, "Why don't we elect another president just like George W. Bush?" That's why he's so often quoted, and his actions and policies held up as models for all Republicans. Did you ever read JFK's "Profiles in Courage"? GWB would, today, be Chapter 1 in that book. Unpopular, maybe -- but right, and in the end, proven to have been right, on practically every topic EXCEPT spending -- yet the current president has generated deficits at 3x Bush's.