WalMart skins workers for $25 billion in wages -- but benefits consumers to tune of $263 billion? Mmm; doesn't take a Ph.D. to figure out that means WalMart could pay out those $5 billion in wages AND $238 BILLION WOULD STILL BE LEFT TO BENEFIT CONSUMERS. :-)
I wonder if Furman even thought of that (cab driver cynic me).
In supposedly socialist Europe they don't have an EITC (as far as I know) -- because in Europe the PAY people enough to live (or should I say: in Europe, wide awake labor makes sure it gets paid enough to live). I don't know why economists here -- well meaning progressives -- always act as if we were in the middle of the Great Depression or something and see things like the EITC as a permanent -- even normal -- way for Americans in the lower wage levels to get by. Add 50% to LBJ's 10/hr minimum wage level -- 40 years and double the average income later -- and we would have a normal lower wage way to live.
Late add: EITC transfers all of 1/2 of one percent of income in a labor market where 45% of employees earn less than a reasonable $15 an hour minimum wage.
Posted by: Denis Drew | Link to comment | June 12, 2008 at 03:46 PM