Quote:
|
Originally Posted by TM875
(neo-conservative? please. That comment hurt more than anything else)
And, for the record, don't put words in my mouth. I respect you for going through the schooling needed to get an economics degree and your military experience, but I believe they must be teaching a different sort of economics in Canada.
|
I absolutely gaurantee that they teach a different type of Economics up here... good thing we have different styles, or how could we publish in journals to further our academic careers?
I truly appologize for the neo-con comment. No offence. I realize now that if someone called me that they would be picking up their teeth with broken fingers. I should have been more careful.
Love you like a brother. I call him on stuff too. Next drink is on me!
Quote:
|
Originally Posted by smooth
Since we have at least three econ buffs in here, I'd like to ask how any of you could use the term "free" market within a context that allows capital freedom of movement, yet restricts labor?
|
Here is the great thing about the 'science' of economics: We put so many restrictions on our theories, our models, that when a real life situation arises and it doesn't jive with our plan we have an easy out!
To have Perfect Competition (and thus arguably a 'free' market) the following conditions must be met:
Perfect Information
Free Entry / Exit
Infinite number of Buyers / Sellers
No Externalities
Homogeneous goods
Although the labour market approaches perfection on several levels, notice that there is Information asymmetry. You and I went to different schools.
You can work if you want (free entry)
You can quit when you want (free exit)
There are an Infinite number of sellers (what is there, like 3 billion labourers world wide?!?)
No externalities (There are almost always externalities… damn acid rain)
Homogeneous goods (no, my labour is better than others and not as good as most!)
So, there is not really a free market 99% of the time IN AN ACADEMIC SENSE!
But I am curious when you use the term "Restricts Labour"... Are you an endentured servant? Are you incarcerated? You state that the labour market is restricted because the new employees must join the union on the acceptance of a job. Are they not allowing you to work there in the first place? That would be an externality, alas.