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Well, the Marxian theory is the growing reserve army of labor increasing the organic composition of capital leading to a fall in the rate of profit and breakdow

Well, the Marxian theory is the growing reserve army of labor increasing the organic composition of capital leading to a fall in the rate of profit and breakdown of capital accumulation. A major assumption was that automation would lower productivity and profit, which did not play out. So, industrialists definitely would benefit from a minimum wage JG force. The purpose of the New Deal was not empowerment, but emergency restructuring. Some of the initial programs (AAA, NRA) were deemed unconstitutional and it was built into a corporatist model for maximum expediency. There weren't any McJobs in the 30s, and the New Deal was certainly not about "decent benefits and pay". Nor would a contemporary minimum wage JG be. Marshallian analysis was not a purely comparative static approach. It did allow for dynamism and fluctuations as actors converged between states. That Keynes spoke of homogeneous investment functions and "marginal efficiency of capital" shows that he was still rooted in that tradition. You're moving the goalposts, though. IS-LM is still his.

crdoconnor 11y ago
>So, industrialists definitely would benefit from a minimum wage JG force. That must be why they throw a torrent of lobbying dollars at think tanks that say that raising the minimum wage will cause the sky to fall. >The purpose of the New Deal was not empowerment, but emergency restructuring. You must have a different definition of "relief for the poor" than the rest of us. >There weren't any McJobs in the 30s Believe it or not, cooking was actually a thing in the 30s too, and it was, likewise, one of the lowest wage jobs out there (~35 cents an hour avg wage).
- vezzy-fnord 11y ago
  Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such the industrialists will have to accept it and adjust output, production, capital stock and labor capacity accordingly. From that point on, the minimum wage JG force would certainly be a benefit in offering an easily accessible venue for sellers of labor who will be compensated at a price no higher than what the law sets as the minimum floor to begin with. Again, I don't see how the New Deal can be couched in such heroic terms. The principal influences for the New Deal were Foster and Catchings, who looked it at from the lens of economic output.
  - crdoconnor 11y ago
    >Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such the industrialists will have to accept it and adjust output, production, capital stock and labor capacity accordingly. Fight it, accept it and then whinge about it and subsequently post lower profits seems to be the default modus operandi. >From that point on, the minimum wage JG force would certainly be a benefit in offering an easily accessible venue for sellers of labor who will be compensated at a price no higher than what the law sets as the minimum floor to begin with. Putting a floor on wages lowers wages to that level huh? Brave hypothesis. Too bad about the evidence. >Again, I don't see how the New Deal can be couched in such heroic terms It was never popular with neoliberals.

crdoconnor 11y ago

>So, industrialists definitely would benefit from a minimum wage JG force. That must be why they throw a torrent of lobbying dollars at think tanks that say that raising the minimum wage will cause the sky to fall. >The purpose of the New Deal was not empowerment, but emergency restructuring. You must have a different definition of "relief for the poor" than the rest of us. >There weren't any McJobs in the 30s Believe it or not, cooking was actually a thing in the 30s too, and it was, likewise, one of the lowest wage jobs out there (~35 cents an hour avg wage).

vezzy-fnord 11y ago
Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such the industrialists will have to accept it and adjust output, production, capital stock and labor capacity accordingly. From that point on, the minimum wage JG force would certainly be a benefit in offering an easily accessible venue for sellers of labor who will be compensated at a price no higher than what the law sets as the minimum floor to begin with. Again, I don't see how the New Deal can be couched in such heroic terms. The principal influences for the New Deal were Foster and Catchings, who looked it at from the lens of economic output.
- crdoconnor 11y ago
  >Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such the industrialists will have to accept it and adjust output, production, capital stock and labor capacity accordingly. Fight it, accept it and then whinge about it and subsequently post lower profits seems to be the default modus operandi. >From that point on, the minimum wage JG force would certainly be a benefit in offering an easily accessible venue for sellers of labor who will be compensated at a price no higher than what the law sets as the minimum floor to begin with. Putting a floor on wages lowers wages to that level huh? Brave hypothesis. Too bad about the evidence. >Again, I don't see how the New Deal can be couched in such heroic terms It was never popular with neoliberals.