4

Quote :

"bgmims: Bridget, whether or not raising the minimum wage causes unemployment aside... You know its simply false to say that because you raised it in the Clinton years and unemployment drops means it doesn't. You can't look and say Y happened after X, therefore X caused Y because the economy is not a simply system. There are hundreds of other variables (nay, thousands) that affect the unemployment rate other than wage costs. Thinking of it in simple minded terms like that is like saying that dumping water in a bucket won't overflow it because you dumped water in a bucket and the water level went down, without bothering to notice the gaping hole in the bottom."

bgmims, save it. I didn't say any of that. I pointed out an example where raising the minimum wage didn't appear to cause an increase in unemployment.

I look to LoneSnark and TGD for help when it comes to understanding economics stuff. Do you have some knowledge you wanna drop on me?

[Edited on August 19, 2006 at 4:33 PM. Reason : sss]

8/19/2006 4:32:30 PM

^ My heart just swooned

8/20/2006 12:03:07 AM

Quote :

"See, people in other countries have two choices for what they do with their dollars."

Isn't their a 3rd choice, spending the dollars in your home country? Dollars are accepted (and often preferred) for goods and services is many countries. Maybe this goes on an insignificant scale, but it is entirely possible to use dollars beneficially overseas that never make it back to the US economy.

8/21/2006 8:48:47 AM

wow...

8/21/2006 9:51:09 AM

^^ In that case, why should we complain?

A bunch of space aliens watching that transation would see the Chinese (for example) shipping electronics and toys to the U.S., and the U.S. sending them back miniature portraits of dead founding fathers. It seems to me the space aliens would perceive this as the U.S. enslaving the Chinese since what they are giving us took a lot of effort to make, and what we gave them was worthless slips of paper (you can't eat it, wear it, or make anything with it).

If we can get a country to sell us goods forever and never expect anything in return then I say let the Treasury run the presses, we'll give them all the money they can stand.

8/21/2006 2:05:16 PM

Quote :

"Maybe this goes on an insignificant scale, but it is entirely possible to use dollars beneficially overseas that never make it back to the US economy."

Sure it goes on...but here's the rub in that.

Why would anyone take a US dollar?

Because they know its worth something.

And why is it worth something?

Because you can use it to purchase goods and services from the United States.

The worth of the dollar is tied to the fact that it can purchase goods HERE, not abroad. See what would happen to it if we decided to change currency. The point is, it is eventually going to be used to purchase US goods and services. Some may get captured out there and stay for an enormous amount of time (some countries use our currency exclusively) but it isn't that it NEVER makes it back, its just that some people have a very narrow definition of never.

8/21/2006 2:09:06 PM

Like the people who cite drug dealing as a great way to suck money off the streets.

8/21/2006 2:10:45 PM

Also, I think its pretty funny that Bridget just told me to save it, because you guys are here for economics help for her.

I simply graduated first in economics last year...not like I have any idea what I'm talking about.

8/21/2006 2:13:00 PM