tag:blogger.com,1999:blog-8897997766931633186.post4572090591157222844..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Will Lower Wages Cure Unemployment?Bill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8897997766931633186.post-52775421699355467942016-10-29T16:00:53.938-04:002016-10-29T16:00:53.938-04:00No, I don’t think it can really do that but I don’...No, I don’t think it can really do that but I don’t really know. I mostly try to focus on what’s happening instead of thinking in this way. I never have to do too much hard work on it because of OctaFX broker which have all the tools in the box to help me out. I can always get updates daily with their daily market update feature and then there is also Economic Calendar that I can keep eye on + monitoring system on their web site to know about top traders doing, it’s all easy to work with.Anamnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-9326531416710646192011-08-23T12:00:55.134-04:002011-08-23T12:00:55.134-04:00"It could be that that claims by firms that t..."It could be that that claims by firms that their problem is low sales is just an illusion of some sort, and that lower prices and wages might result in more real expenditure, but firms couldn't produce more in response because they are already pressing against capacity constraints."<br /><br />That sounds a bit like the Austrian argument that mis-allocations of resources during the housing boom has broken the structure of production and what we need is just time (without government intervention) for things to fix themselves.<br /><br />It would be interesting to know what data points would be needed to validate this theory.<br /><br />More likely however the fears about potential sales are another way of expressing low confidence and leading businesses (and individuals) to maintain a high demand for money. This is what makes monetary solution's to the recession very tempting but (because of the inflation and structure of production concerns) very risky.Rob Readnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-39093573359181496212011-08-21T07:35:50.526-04:002011-08-21T07:35:50.526-04:00Nominal consumption (dollar value) per worker fall...Nominal consumption (dollar value) per worker falls 10%, but with total employment increasing 10%, total nominal consumption remains unchanged. Real consumption per worker stays the same because the prices of consumer goods are 10% lower, but total real consumption expands 10% with nominal consumption expenditure the same and prices 10% lower.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-56859236382468406012011-08-21T01:01:06.336-04:002011-08-21T01:01:06.336-04:00"The way lower wages for the unemployed resul..."The way lower wages for the unemployed results in increased employment is that the competition of the unemployed workers results in lower wages for currently employed workers. Those workers who have jobs must be paid less."<br /><br />Why doesn't this lead to a fall in GDP as consumption falls? This fall in GDP offsets the rise in output you describe as prices fall.Anonymousnoreply@blogger.com