Monthly Archives: July 2010
New Age Equilibrium Wage
The study of economics has a tendency to assume consumers, producers, workers, and/or any other agent, has a mechanical nature about them. With regard to the issue of minimum wage, such an ideological distortion is definitely problematic. Why is it problematic? The answer is simple. Firms always look for, or are at least open to, ways to lower costs. One of those ways is to lower variable costs, which means slashing the compensation of the workers. There is obviously a flip side to this. No worker actually wants to receive lower wages because most if not all workers see themselves as worth more than they really are per hour. However, economics assumes that people will adapt to these market-driven changes in wages or pursue other value producing opportunities. That is clearly unrealistic, and hence, the existence of labor unions. Continue reading
Israel or Bust!
On May 31, 2010, a Gaza-bound Turkish flotilla intersected Israeli naval ships. The account of this event differs depending upon which news source you read; either the spiteful Israeli navy savagely brutalized humanitarian relief workers looking to transport goods to Gaza or the demonstrators aboard the Mavi Marma (the Turkish ship) reacted in violence to said navy [1] upon denying a request to dock at the Israeli port of Ashdod, where the Israeli navy hoped to inspect the cargo carried on board. [Note: if there is any doubt as to the legitimacy of Israel’s actions towards the Turkish flotilla, be sure to take a look at The Naval Warfare Publication regarding The Commander’s Handbook on the Law of Naval Operations”i.] Instead of orating some concession of affirmation regarding the Israeli navy’s choice of engagement with said Turkish flotilla, the current U.S. administration chose to tote the line carried by the likes of the United Nations – namely neglecting to conduct an in-depth investigation into the matter before severely admonishing Israel’s alleged poor behavior in blindly attacking those aboard the Mavi Marma – and relinquishing the opportunity to demonstrate a proper response to this event. Continue reading