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

To: TimF who wrote (761848)	1/6/2014 6:24:39 PM
From: neolib	Read Replies (1) \| Respond to of 1573857

The big problem is that closed-loop systems have dynamics, while much of economics argues about the steady-state equilibrium to which the system is expected to settle. Its a major problem to ignore dynamics in closed-loop systems. Especially in systems with autonomous agents (human brains) running around.

To: TimF who wrote (761848)	1/6/2014 6:33:51 PM
From: neolib	Read Replies (2) \| Respond to of 1573857

IMHO, the real question wrt to minimum wage is tied back to wealth concentration. In an economy with lower working wages and higher wealth concentration, I expect lower productivity over time and higher asset inflation. This is somewhat what is happening in the USA where the middle and lower class has less disposable income and so purchases less goods, while the top tier has a much larger fraction of the pie, but uses that income in much different ways. The question is really whether distributed wealth makes for a more robust economy than concentrated wealth. Unfortunately, its mostly hand waving based on biases when people talk about this. Very little in the way of good data on the subject. Partly because one would need to see a few decades of data sans other factors, and that is hard to achieve.