Tuesday, November 30, 2021

Counterfactuals on labor and capital

       According to Paul Krugman in today's NYT, workers employed by McDonalds in Denmark make the equivalent of $20./hr. and enjoy 6 weeks of paid vacation every year!   Does anyone seriously think fast food establishments in the US would have a labor shortage if they offered these wages and perks? 

      As Krugman points out,  American insularity feeds a feeling of superiority to Europe's economic system, especially when it comes to worker rights and income inequality.   Quite a bit of these false feelings are based on ignorance.   Many people in America cannot believe there are ways to do capitalism in a more humane and economically equal way.   They would flatly reject the example cited above of McDonalds paying a living wage and treating their employees with humanity.   We have a long way to go and it will require a big dose of humility before we acknowledge we may not know it all.

No comments:

Post a Comment