Randall Arnold

What Can We Learn from the 1930s?

Sorry, paultat, I don't believe minimum wage will be an obstacle. It may be touted as one by opponents, but that's just a red herring. After all, as many often argue, who really pays minimum wage? I fail to see how it hurts anyone seeing as how the real wage bottom tends to be above the established minimum.

What Can We Learn from the 1930s?

paultat, you're missing the point of BS detector. Ok, maybe 1 or two "burger flippers" lost their jobs recently. But the low-end service industry is where I'm seeing the job vacancies. And yes, by and large the people being laid off in droves (ie, tens of thousands at a time) were making much, much more than minimum wage.

Again: the increase in minimum wage had nothing to do with this disaster, and really won't affect it, either.

What Can We Learn from the 1930s?

CLH, raising the minimum wage will have zero effect on the current crisis. But surely you knew that, and just wanted to bag on Democrats (it can be fun after all).

However, I hate to break it to Republicans, but the answer to all of this really is regulation. You call it "accountability" but have this quaint notion that such a system can come about solely by virtue of honor. History tells us this is naive. They do teach history to Keynesians, right?

How regulation became a dirty word I do not know, but if it is an evil it is a necessary one. Regulation, ie ensured accountability, throttles the excesses that cause disruption the system cannot tolerate. Necessary disruptions (such as technological advance) are special causes that must be managed as well, else they destroy the status quo a bit TOO fast.

Anyway, interesting article to be sure!

Disclaimer: I do not belong to any political party mentioned.