3 ms·
The price inflexibility is deeply ingrained in housing prices, and the regulation by the state. No matter how desperate you are, you cannot legally work for as
by aaronblohowiak 18y ago
The price inflexibility is deeply ingrained in housing prices, and the regulation by the state. No matter how desperate you are, you cannot legally work for as little as someone in many foreign lands.
- barbie17 18y agoWe are not even close to there yet. If that does become a problem, if min-wage causes 30%+ of the workforce to be unemployed, the government will lower it. They are stupid, but not that stupid. Besides, housing prices are also shaped by supply and demand. If unemployment becomes very high, housing prices will drop. Essentially what you are talking about is short-run price inflexibility.
- aaronblohowiak 18y agoI so not disagree with you on any point other than perhaps the use of "short", which is a comparative term anyway.
- lgriffith 18y ago"They are stupid [ the government] , but not that stupid." Don't count on it. There is something about government that attracts and concentrates stupidity. They discount reality, blank out unintended consequences, operate with stolen wealth, and shift blame AND cost for its failure onto its victims. In that environment its almost impossible not to be terminally stupid.
- aaronblohowiak 18y agoStupid or negligent?