Sunday, May 17, 2009


Wages Are Too Flexible Downward

Von Pepe rises above the call of duty and points out that many businesses are cutting wages: they've stopped matching 401(k) contributions and scaled back other benefits.

"“The problem is, we are heading into this serious recession, and we don’t know how long it will go on for,” said Alicia Munnell, director of the Center for Retirement Research at Boston College."

"Heading into"? Hmm, Alicia is a little behind the times, me thinks.
Whatever happened to "sticky wages". I even saw Krugman write that wages are falling.
Government intervention is non-falsify-able. When one insane justification for it is demolished, first in theory, then in reality, a new and contradictory justification for it pops up.
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