Legal Commentary

In The Long Run . . .

By Big Tent Democrat

From the comment thread of a much cited today Austin Frakt post:

The literature is clear that an increase in premiums will decrease the available pool of funds necessary for wages. However I would argue that a corresponding decrease in premiums would be ’sticky’ in any return to the employees. The problem of course is that we have never seen the premiums go down.

Austin Frakt [--] Excellent point. My thinking on this one is that it is a short-run/long-run question. In the short-run, wages will stick as you suggest, in the long run, they’ll go up [. . .].

(Emphasis supplied.) Any data to support that "thinking?" Why no of course. Alan Greenspan "thought" a lot of things too. Also, "In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again." - John Maynard Keynes.

Also, The Eagles

Speaking for me only

Full post as published by TalkLeft on January 08, 2010 (boomark / email).