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Daily Archive for May 7th, 2010

Some folks are incensed at the level of wage inequality that emerges in a private market order. That inequality emerges ought not surprise anyone. Workers earn wages (actually compensation) commensurate with their ability to produce valuable goods and services and their firm’s ability to sell those things. If you want a fancy term for this, […]

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Thought Experiment

I can’t tell you how many of my students think that taxes do not promote disincentives to act. They think, for example, that when you tax wages, the only possible response is to work more. When you tax savings, the only possible response is to save more, and so on. Their thinking is that you […]

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