If the last worker hired is being paid an hourly wage less than the value of the firm's output per hour, if would make sense to hire additional workers. The theory isn't completely batty, but it is way too easy to find egregious exceptions.
As the 2016 presidential campaign kicks off, the economy is growing and Americans are getting back to work. However, for far too many people plotting a course from the working class to the middle class requires navigating dangerous waters filled with financial icebergs.
Americans will only truly be free when they have equal access to transportation; to a good job; to a living wage; to education; to voting; to time they can spend with their families, and more.
Given the economy's size and complexity, our problems cannot be solved by tinkering around the edges. Instead, a total revamp is necessary, one that both grows the middle class while reining in the runaway excess of the business class.
As most people know, economists are good at rewriting history. We have seen this in the last few years as the collapse of the housing bubble and the ensuing downturn has been turned into one of those unavoidable tragedies that could not have been prevented.
President Obama can strengthen his legacy in this area with tools he already has. He doesn't need to magically unlock the logjam in Congress to help ensure the resources for affordable housing for years to come.
The income gap between poor minority and middle-class white communities continues to widen. While the recovery has boosted housing prices overall, it hasn't boosted them in poor communities.
Democratic capitalism arose hand-in-hand with the industrial age. If it's to survive the transition to a knowledge age and the digital economy, it will have to change -- profoundly.
There are many serious issues raised by the Trans-Pacific Partnership (TPP), but the one that may have the greatest long-term impact is its provisions on drug patents. The explicit purpose is to make patent protection stronger and longer. While these provisions are likely to lead to higher drug prices in the United States, they will have their greatest impact in the developing world. In most developing countries, drugs are far cheaper than in the United States. This is especially the case in India. The country has a world-class generic industry that produces high-quality drugs that typically sell for a small fraction of the price in the United States. The U.S. drug industry desperately wants to eliminate this sort of price gap, which can exceed a ratio of one hundred to one. This should have everyone very worried.
It would be very healthy for the Republic right now if Vermont Senator and Democratic presidential candidate Bernie Sanders would lead a "talking filibuster" of Fast Track.
Congratulations graduate! You tossed your cap into the air, you celebrated like a champion, you are slowly emerging from your hangover, and you are beginning to wonder: What the hell am I gonna do now?
The last time that we had large and growing inequality was during the so-called Roaring Twenties, which ended with the Great Depression. As part of the response, we enacted Social Security. We should learn from the past.
Whether addressed through stories of the candidate's humble origins or lofty ideals, their conversations are beginning to be about how to set the economic stage for greater prosperity for all of our citizens. This is a promising trend.
When I met political scientist Mitja Zagar in Slovenia, he provided the most chilling prediction. "I believe that the only way of dismantling Yugoslavia without creating any kind of new links or forms of common living would be if there is a war in some parts."
By lifting the "small boats" of the poor and middle class, we can build both a fairer society and a stronger economy, IMF Managing Director Christine ...
Have you seen the new Walmart commercials? They're fabulous. They're heartwarming. They bring back any faith in humanity you may have lost. Actually, they're a spectacular exercise in disingenuous, masturbatory fiction.