Comment of the Day: JEC: "Against my better judgment, I find that I must demand, in the strongest possible terms, that you kids withdraw forthwith from my lawn. More specifically, this is correct: 'The concept was developed by the economist Joan Robinson in her 1933 book The Economics of Imperfect Competition to describe the labor market equivalent of a monopoly, where workers only have the option to work at one employer, so their wages will be set less than the value they create+ since they have no outside options'...
...But this is bollocks: "But work pioneered by economist Alan Manning at the London School of Economics in his book Monopsony in Motion broadens the definition of monopsony to include labor market dynamics where workers do not respond to changes in wages as would be predicted by a competitive model." Why in the world would anyone think it was a good idea to take a technical term denoting a specific market failure and turn it into a generic label for any and all market failures? O tempora o mores!
+Errr… correct-ish. "The value they create" is not an accurate rendering of "the marginal product of labor." But that's a separate rant...
#commentoftheday
