Tuesday, May 02, 2006

Will the real friends of workers (i.e. wage earners) please stand up, please stand up

  George Reisman has come out with a great article showing the true
friends of workers (i.e. wage earners).  It is a bit technical at
times, however you can easily figure out the full meaning by reading
it in its entirety.  When he talks about money wages, he  is
referring to an inflated wage. Which may come from either inflation  directly, or
from another artificial raise like force ( i.e. Unions or
Government).  When wages raise artificially, the cost of production
goes up and so does the cost of living. Real wage is mainly dealing
with actual raise in purchasing power. When money wages go up, you are
only able to buy the same amount of things or less, because the cost of
living has gone up accordingly. However, when the cost of living goes
down, due to increased production, your purchasing power increases
even though your monetary wage amount has not gone up.  It is an
interesting article and I would challenge everyone to read it. It sheds light on a
view that most people do not think about. One of these days I will have
to write an article regarding this topic in more layman's terms. For
now enjoy Reisman's article below:

George Reisman's Blog on Economics, Politics, Society, and Culture: The Real Friends and Enemies of Wage Earners: An Intellectual Challenge to the Left

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