Abstract
“ A cool - headed analysis indicates that the minimum - wage debate centers primarily on issues of interpretation rather than fundamental disagreements on empirical findings ” (S&N p. 78). The actual cool-headed analysis indicates that this is a sensitive issue that turns on ideology and on which model one applies to the problem.
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- 1.
John Schmitt, “Why Does the Minimum Wage Have No Discernible Effect on Employment?,” Center for Economic and Policy Research, February 2013. http://www.cepr.net/documents/publications/min-wage-2013-02.pdf, accessed February 23, 2013.
- 2.
The minimum wage in San Francisco is $10.55 and in Seattle it is $15.00.
- 3.
See his Nobel Prize Lecture, December 8, 2002. Daniel Kahneman, Maps of Bounded Rationality: A Perspective on intuitive Judgment and choice. http://nobelprize.org/mediaplayer/index.php?id=531 accessed October 8, 2914.
- 4.
John Conlisk, 1996. “Why Bounded Rationality?” Journal of Economic Literature, 34, 2:669–700.
- 5.
YouTube video, “NBR Interview with Daniel Kahneman: Your Mind and Your Money,” from an interview televised by PBS on October 19, 2009, posted by “PBS,” November 6, 2009. http://www.youtube.com/watch?v=rZUylXXJbhE accessed October 8, 2914.
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Kahneman, D., Knetsch, J.L., and Thaler, R.H., 1991. Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias. Journal of Economic Perspectives, 5(1):193–206; Knetsch, J.L., 1989. The Endowment Effect and Evidence of Nonreversible Indifference Curves. American Economic Review 79, 1277–84; Knetsch, J.L., Sinden, J.A., 1984. Willingness to pay and compensation demanded: Experimental evidence of an unexpected disparity in measures of value, Quarterly Journal of Economics 99, 507–521.
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Tim Chen, “American Household Credit Card Debt Statistics: 2014,” http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/ accessed April 15, 2015.
- 8.
John Komlos, “Has Creative Destruction Become More Destructive? NBER Working Paper No. 20379, August 2014.
- 9.
W. Brian Arthur, 1994. Increasing Returns and Path Dependence in the Economy. Ann Arbor, University of Michigan Press.
- 10.
Paul David, “Clio and the Economics of QWERTY,” American Economic Review 75, 2 (May 1985):332–337.
- 11.
Wikipedia contributors, “Household Income in the United States,” http://en.wikipedia.org/wiki/Household_income_in_the_United_States accessed October 8, 2914. Erik Eckholm, “Recession Raises Poverty Rate to a 15-Year High,” The New York Times, September 16, 2010. http://www.nytimes.com/2010/09/17/us/17poverty.html?emc=eta1 accessed October 8, 2914. See also: James K. Galbraith, Created Unequal. The crisis in American pay. The University of Chicago Press, 2000.
- 12.
The salaries can be found at AFL CIO, “Executive Pay Watch,” http://www.aflcio.org/corporatewatch/paywatch/ceou/database.cfm accessed October 8, 2914.
- 13.
Gretchen Morgenson, “Lending Magnate Settles Fraud Case,” The New York Times, October 15, 2010. http://www.nytimes.com/2010/10/16/business/16countrywide.html?th&emc=th accessed October 8, 2914.
- 14.
“Buffett isn’t the only billionaire who has argued for higher taxes. Both Microsoft co-founder Bill Gates and his father, Bill Gates, Sr., came out in support of a Washington state measure to ‘create a 5 percent tax rate on annual income exceeding $200,000 for individuals and $400,000 for couples, and a 9 percent tax rate on income that tops $500,000 for individuals and $1 million for couples.’” Amanda Terkel, “Warren Buffet: I ‘Should Be Paying A Lot More in Taxes,” Huffington Post, November 21, 2010. http://www.huffingtonpost.com/2010/11/21/warren-buffett-paying-more-taxes_n_786516.html accessed October 8, 2914. “Executives Who Support Tax Increases to Fix the Deficit,” The Wall Street Journal, October 25, 2012. Ryan Grim and Sabrina Siddiqui, “Top Two Percent to GOP: Tax Us,” Huffington Post, December 5, 2012. Andrew Garber, “Like Father, like son: Bill Gates supports income-tax initiative 1098,” The Seattle Times, September 21, 2010, http://seattletimes.com/html/politicsnorthwest/2012959755_microsoft_co-founder_bill_gate.html accessed October 8, 2914.
- 15.
Wikipedia contributors, “Richard S. Fuld, Jr.,” http://en.wikipedia.org/wiki/Richard_S._Fuld,_Jr accessed October 8, 2914.
- 16.
Mary Williams Walsh, “Insurance Giant A.I.G. Takes Ex-Chief to Court,” The New York Times, June 14, 2009. http://www.nytimes.com/2009/06/15/business/15aig.html accessed October 8, 2914.
- 17.
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, ed. Edwin Cannan (London: Methuen & Co., 1904), available online at Library of Economics and Liberty, p. 700.
- 18.
Wikipedia contributors, “California Electricity Crisis,” http://en.wikipedia.org/wiki/California_electricity_crisis#Involvement_of_Enron accessed October 8, 2914.
- 19.
Gretchen Morgenson, “Raters Ignored Proof of Unsafe Loans, Panel Is Told,” The New York Times, September 26, 2010. http://www.nytimes.com/2010/09/27/business/27ratings.html?emc=eta1 accessed October 8, 2914.
- 20.
Apple Inc.’s annual report to the Securities and Exchange Commission for the fiscal year 2014, October 27, 2014, http://investor.apple.com/secfiling.cfm?filingid=1193125-14-383437&cik=#D783162D10K_HTM_TOC783162_8 accessed April 18, 2015.
- 21.
“…we assume that more choice means better options and greater satisfaction. But beware of excessive choice: choice overload can make you question the decisions you make before you even make them, it can set you up for unrealistically high expectations, and it can make you blame yourself for any and all failures. In the long run, this can lead to decision-making paralysis. And in a culture that tells us that there is no excuse for falling short of perfection when your options are limitless, too much choice can lead to clinical depression.” Barry Schwartz, The Paradox of Choice: Why More is Less (New York: Ecco Publishers, 2003). He also has a number of great lectures on video in the internet: “Barry Schwartz: The Paradox of Choice,” YouTube video, 20:23, posted by “TEDtalksDirector,” January 16, 2007; “The Paradox of Choice-Why More is Less,” YouTube video, 1:04:08, posted by GoogleTalksArchive, April 27, 2006.
- 22.
Alexis Madrigal, “Apple’s Brilliant Decoy Pricing Game,” The Atlantic, October 5, 2010. http://www.theatlantic.com/technology/archive/2010/10/apples-brilliant-decoy-pricing-game/64104/ accessed October 8, 2914.
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Komlos, J. (2016). Micro: Supply and Demand in the Product Markets. In: Principles of Economics for a Post-Meltdown World. SpringerBriefs in Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-27828-5_2
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