Attention Economy


Monday, May 7, 2018

Comparative Advantage, Labor Productivity and Wages

Apparently, US government negotiators don’t understand basic economics (the so-called ‘pauper labor fallacy’ is still quite influential in political circles):
In Nafta Talks, U.S. Pushes Mexico to Raise Wages for Its Auto Workers

Nobel Laureate Paul Krugman wrote a famous piece in the mid-1990s that is suddenly very relevant: 
RICARDO'S DIFFICULT IDEA
Related: In Praise of Cheap Labor