Thursday, October 20, 2011

Multipliers or Economics Still Not a Science

Why should 3rd world workers earn as much as 1st world workers, you ask. Well


First of all, even if we could assure the workers in Third World export industries of higher wages and better working conditions, this would do nothing for the peasants, day laborers, scavengers, and so on who make up the bulk of these countries' populations. At best, forcing developing countries to adhere to our labor standards would create a privileged labor aristocracy, leaving the poor majority no better off.
But what, you wonder, about the multiplier effect. You know where jobs create other jobs. Some people like to explain, slowly for those who need extra help, that
Funny how [ government] spending can only move money around, not increase total spending, if it comes from the government, and how the multiplier is a nonsense concept when applied to government spending, but totally valid when it involves oil companies …
So, apparently, jobs only create jobs in the 1st world.  

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