In response to:

Mandated Wages and Discrimination

Delta Wrote: Mar 06, 2013 5:57 PM
Don't know who first said this (and I'm paraphrasing) but so true: if you're a demmie as a youth you have no brain. You still have no brain if you grow up and are still a demmie.

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....