3 ms·
Increasing the wage of people who would otherwise earn far less will absolutely increase the velocity. It's preposterous to say that it would be one to one, I n
by weeksie 12y ago
Increasing the wage of people who would otherwise earn far less will absolutely increase the velocity. It's preposterous to say that it would be one to one, I never made any such claim. However, your argument is that we are somehow at a perfect equilibrium with tradespeople. That's just not the case. I feel like you're throwing your lot in with freshwater economics which has a pretty terrible track record.
- gress 12y agoOk - fair point about the increase in velocity. But the increase in velocity will be distributed across the whole economy, and therefore of minimal impact on the tradespeople, whose value will be diluted in proportion to the supply.