In response to:

Mandated Wages and Discrimination

AlsoSprachGideon Wrote: Mar 06, 2013 12:15 PM
The money the wealthy hoard is spent on stocks and bonds thus inflating their prices. Since it isn't cycled through the economy, the economy will continue to decline. If the wealthy put heir money into infrastructure, public education, research and (yes) food subsidies for the poor the country would prosper. Whoever heard of a hedge fund manager who replaced a crumbling public school? Taxes revenues pay for the other stuff. The taxes the rich would have to pay to make all these things work get cycled into the economy and are spent in the private sector on food and housing and medical care at businesses controlled and owned by the very people who don't want to pay taxes. The return on their extra taxes would be increased wealth,

Let's work through an example. Suppose 100 yards of fence could be built using one of two techniques. You could hire three low-skilled workers for $15 each, or you could hire one high-skilled worker for $40. Either way, you get the same 100 yards of fence built. If you sought maximum profits, which production technique would you employ? I'm guessing that you'd hire one high-skilled worker and pay him $40 rather than hire three low-skilled workers for $15 each. Your labor costs would be $40 rather than $45.

Suppose the high-skilled worker came into your office and demanded $55 a day....