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	<title>Comments on: Market Power, Wages, Unemployment and Economic Policy</title>
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		<title>By: Steve Verdon</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109649</link>
		<dc:creator>Steve Verdon</dc:creator>
		<pubDate>Sun, 14 Jan 2007 07:06:24 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109649</guid>
		<description>&lt;blockquote&gt;One more thing, please, and I will leave you alone for a time.

I meant to point out that protectionism is most rampant, and most expensive, in government and education. To see protectionism at its’ most excessive, look at government and education employee unions and their efforts against lack of employment, or reductions in compensation &lt;/blockquote&gt;

I agree, RJN, but on this issue you are preaching to the choir here.</description>
		<content:encoded><![CDATA[<blockquote><p>One more thing, please, and I will leave you alone for a time.</p>
<p>I meant to point out that protectionism is most rampant, and most expensive, in government and education. To see protectionism at its&rsquo; most excessive, look at government and education employee unions and their efforts against lack of employment, or reductions in compensation </p></blockquote>
<p>I agree, RJN, but on this issue you are preaching to the choir here.</p>
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		<title>By: Billy</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109566</link>
		<dc:creator>Billy</dc:creator>
		<pubDate>Sat, 13 Jan 2007 02:37:14 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109566</guid>
		<description>&lt;blockquote&gt;Well, I hope you’re happy now that you have won.&lt;/blockquote&gt;

I totally am.  Thanks!</description>
		<content:encoded><![CDATA[<blockquote><p>Well, I hope you&rsquo;re happy now that you have won.</p></blockquote>
<p>I totally am.  Thanks!</p>
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		<title>By: RJN</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109560</link>
		<dc:creator>RJN</dc:creator>
		<pubDate>Sat, 13 Jan 2007 02:06:06 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109560</guid>
		<description>One more thing, please, and I will leave you alone for a time.

I meant to point out that protectionism is most rampant, and most expensive, in government and education. To see protectionism at its&#039; most excessive, look at government and education employee unions and their efforts against lack of employment, or reductions in compensation</description>
		<content:encoded><![CDATA[<p>One more thing, please, and I will leave you alone for a time.</p>
<p>I meant to point out that protectionism is most rampant, and most expensive, in government and education. To see protectionism at its' most excessive, look at government and education employee unions and their efforts against lack of employment, or reductions in compensation</p>
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		<title>By: Steve Verdon</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109541</link>
		<dc:creator>Steve Verdon</dc:creator>
		<pubDate>Sat, 13 Jan 2007 00:29:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109541</guid>
		<description>RJN,

I didn&#039;t say that self-betterment or that participatory government are irrelevant or unimportant.  My point is that when competition is allowed in economic endeavors, things get better.  When competition is stifled things tend to get worse.

Limiting immigrant workers on economic grounds falls into the latter catagory.  Controlling our borders for security reasons is very sensible and something we should do.  But this idea that there is an economic bonus or that it is also good for the economy is almost surely not true.

As for taxing imports, that has basically the same effect.  It gives the domestic industries market (increases monopoly) power.  If it works on an international trade basis, why not do it on a domestic basis.</description>
		<content:encoded><![CDATA[<p>RJN,</p>
<p>I didn't say that self-betterment or that participatory government are irrelevant or unimportant.  My point is that when competition is allowed in economic endeavors, things get better.  When competition is stifled things tend to get worse.</p>
<p>Limiting immigrant workers on economic grounds falls into the latter catagory.  Controlling our borders for security reasons is very sensible and something we should do.  But this idea that there is an economic bonus or that it is also good for the economy is almost surely not true.</p>
<p>As for taxing imports, that has basically the same effect.  It gives the domestic industries market (increases monopoly) power.  If it works on an international trade basis, why not do it on a domestic basis.</p>
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		<title>By: RJN</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109535</link>
		<dc:creator>RJN</dc:creator>
		<pubDate>Sat, 13 Jan 2007 00:11:42 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109535</guid>
		<description>You are a swell guy to put up with me, but may I ask a few of questions? 

Isn&#039;t the bedrock of free enterprise self betterment? And, isn&#039;t the bedrock of community and participatory government the family? Aren&#039;t these the glue of a Nation, and isn&#039;t emotion involved? 

If we spurn these qualities, and consider them useless in economic affairs; in other words, if we say to one-half of our population - &quot;We don&#039;t respect your contributions enough anymore, you don&#039;t get consideration as full citizens anymore&quot; - are we still a Nation?

Another thing that matters is the fact that we are keeping too much technological development from our own workers and industries by letting it all happen outside of the U.S.

In any case my proposal has always been to collect duties, or tariffs, on mfg. goods from abroad and apply the proceeds to Soc. Sec.

I still think your proposed experiment is apples and oranges.</description>
		<content:encoded><![CDATA[<p>You are a swell guy to put up with me, but may I ask a few of questions? </p>
<p>Isn't the bedrock of free enterprise self betterment? And, isn't the bedrock of community and participatory government the family? Aren't these the glue of a Nation, and isn't emotion involved? </p>
<p>If we spurn these qualities, and consider them useless in economic affairs; in other words, if we say to one-half of our population - "We don't respect your contributions enough anymore, you don't get consideration as full citizens anymore" - are we still a Nation?</p>
<p>Another thing that matters is the fact that we are keeping too much technological development from our own workers and industries by letting it all happen outside of the U.S.</p>
<p>In any case my proposal has always been to collect duties, or tariffs, on mfg. goods from abroad and apply the proceeds to Soc. Sec.</p>
<p>I still think your proposed experiment is apples and oranges.</p>
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		<title>By: Steve Verdon</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109533</link>
		<dc:creator>Steve Verdon</dc:creator>
		<pubDate>Fri, 12 Jan 2007 23:57:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109533</guid>
		<description>&lt;blockquote&gt;Try googling “Godwin’s Law.” It might aid you in developing the sense of humor that is so obviously lacking.&lt;/blockquote&gt;

I&#039;d suggest you use dictionary.com to look up the word sarcasm.  Sheesh.

&lt;blockquote&gt;You take your economic analysis very personally, particularly when arguing with an anonymous poster who agrees with your central point. Take a deep breath, man.&lt;/blockquote&gt;

I took nothing personally.  Your comments were largely irrelevant and I said so.

&lt;blockquote&gt;BTW: You still never began to address the substance of my comment. Therefore I win. &lt;/blockquote&gt;

Well, I hope you&#039;re happy now that you have won.

Oh and I apologize for the terse nature of my posts as it seems to have upset you.</description>
		<content:encoded><![CDATA[<blockquote><p>Try googling “Godwin&rsquo;s Law.” It might aid you in developing the sense of humor that is so obviously lacking.</p></blockquote>
<p>I'd suggest you use dictionary.com to look up the word sarcasm.  Sheesh.</p>
<blockquote><p>You take your economic analysis very personally, particularly when arguing with an anonymous poster who agrees with your central point. Take a deep breath, man.</p></blockquote>
<p>I took nothing personally.  Your comments were largely irrelevant and I said so.</p>
<blockquote><p>BTW: You still never began to address the substance of my comment. Therefore I win. </p></blockquote>
<p>Well, I hope you're happy now that you have won.</p>
<p>Oh and I apologize for the terse nature of my posts as it seems to have upset you.</p>
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		<title>By: Billy</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109528</link>
		<dc:creator>Billy</dc:creator>
		<pubDate>Fri, 12 Jan 2007 22:58:02 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109528</guid>
		<description>Steve,

Try googling &quot;Godwin&#039;s Law.&quot;  It might aid you in developing the sense of humor that is so obviously lacking.

You take your economic analysis very personally, particularly when arguing with an anonymous poster who agrees with your central point.  Take a deep breath, man.

BTW: You still never began to address the substance of my comment.  Therefore I win.</description>
		<content:encoded><![CDATA[<p>Steve,</p>
<p>Try googling "Godwin's Law."  It might aid you in developing the sense of humor that is so obviously lacking.</p>
<p>You take your economic analysis very personally, particularly when arguing with an anonymous poster who agrees with your central point.  Take a deep breath, man.</p>
<p>BTW: You still never began to address the substance of my comment.  Therefore I win.</p>
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		<title>By: Steve Verdon</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109524</link>
		<dc:creator>Steve Verdon</dc:creator>
		<pubDate>Fri, 12 Jan 2007 22:03:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109524</guid>
		<description>RJN,

Your last comment makes no sense.</description>
		<content:encoded><![CDATA[<p>RJN,</p>
<p>Your last comment makes no sense.</p>
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		<title>By: RJN</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109518</link>
		<dc:creator>RJN</dc:creator>
		<pubDate>Fri, 12 Jan 2007 21:52:42 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109518</guid>
		<description>O. K. Working for ones family, or community, is the same thing as working for whoever some foreign wind blows in front of you. While you are at it, take your pension plans, and your medical insurance plans, and your C.D.&#039;s, and stock certificates and throw them to a benign wind so they land in someone Else&#039;s hands.</description>
		<content:encoded><![CDATA[<p>O. K. Working for ones family, or community, is the same thing as working for whoever some foreign wind blows in front of you. While you are at it, take your pension plans, and your medical insurance plans, and your C.D.'s, and stock certificates and throw them to a benign wind so they land in someone Else's hands.</p>
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		<title>By: Steve Verdon</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109515</link>
		<dc:creator>Steve Verdon</dc:creator>
		<pubDate>Fri, 12 Jan 2007 21:37:33 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109515</guid>
		<description>Billy,

While I cited competition in my footnote, I also closed that note with the following,

&lt;blockquote&gt;The same result holds, qualitatively for markets that are between competitive markets and monopoly markets such as markets that are characterized as oligoply. &lt;/blockquote&gt;

In short,

1. I&#039;m aware that perfect competition in the real world is very, very rare.
2.  That perfect monopoly is also very, very rare.
3.  That despite this possible objection the qualitative aspects of the footnote hold when we move from one end of the continuum to the other.

Hence your objection is without any merit and highlights at best a superficial understanding of economic theory and how to apply it to the real world.

&lt;blockquote&gt;...do you want to go ahead and call me a nazi now and get it over with?&lt;/blockquote&gt;

Why, would it make you feel better or something?

Oh and one more thing, I didn&#039;t bring up the WPA, so agian an irrelevant point that doesn&#039;t address in anyway the substance of my post.

And guys like Hamilton are not your typical &quot;Chicago type&quot; as he went ot Berkeley to get his PhD.

RJN,

&lt;blockquote&gt;I don’t think your challenge was, itself, very honest. You ignore the fact that we have to include the value of nationhood, and tax burdens, and expected rights after generations of doing it right for your country, and perhaps serving in the military, and or losing a child or brother while ostensibly serving the U. S. in your thought experiment. &lt;/blockquote&gt;

Oh yes, lets drag in lots of emotional baggage so that we can make a decision based on emotion vs. logic, empirical evidence, and sound reasoning.</description>
		<content:encoded><![CDATA[<p>Billy,</p>
<p>While I cited competition in my footnote, I also closed that note with the following,</p>
<blockquote><p>The same result holds, qualitatively for markets that are between competitive markets and monopoly markets such as markets that are characterized as oligoply. </p></blockquote>
<p>In short,</p>
<p>1. I'm aware that perfect competition in the real world is very, very rare.<br />
2.  That perfect monopoly is also very, very rare.<br />
3.  That despite this possible objection the qualitative aspects of the footnote hold when we move from one end of the continuum to the other.</p>
<p>Hence your objection is without any merit and highlights at best a superficial understanding of economic theory and how to apply it to the real world.</p>
<blockquote><p>...do you want to go ahead and call me a nazi now and get it over with?</p></blockquote>
<p>Why, would it make you feel better or something?</p>
<p>Oh and one more thing, I didn't bring up the WPA, so agian an irrelevant point that doesn't address in anyway the substance of my post.</p>
<p>And guys like Hamilton are not your typical "Chicago type" as he went ot Berkeley to get his PhD.</p>
<p>RJN,</p>
<blockquote><p>I don&rsquo;t think your challenge was, itself, very honest. You ignore the fact that we have to include the value of nationhood, and tax burdens, and expected rights after generations of doing it right for your country, and perhaps serving in the military, and or losing a child or brother while ostensibly serving the U. S. in your thought experiment. </p></blockquote>
<p>Oh yes, lets drag in lots of emotional baggage so that we can make a decision based on emotion vs. logic, empirical evidence, and sound reasoning.</p>
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		<title>By: RJN</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109503</link>
		<dc:creator>RJN</dc:creator>
		<pubDate>Fri, 12 Jan 2007 20:30:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109503</guid>
		<description>I don&#039;t think your challenge was, itself, very honest. You ignore the fact that we have to include the value of nationhood, and tax burdens, and expected rights after generations of doing it right for your country, and perhaps serving in the military, and or losing a child or brother while ostensibly serving the U. S. in your thought experiment.</description>
		<content:encoded><![CDATA[<p>I don't think your challenge was, itself, very honest. You ignore the fact that we have to include the value of nationhood, and tax burdens, and expected rights after generations of doing it right for your country, and perhaps serving in the military, and or losing a child or brother while ostensibly serving the U. S. in your thought experiment.</p>
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		<title>By: Billy</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109495</link>
		<dc:creator>Billy</dc:creator>
		<pubDate>Fri, 12 Jan 2007 20:10:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109495</guid>
		<description>As much as I hate to cite wikipedia, have a look at the entry for &lt;a href=&quot;http://en.wikipedia.org/wiki/Perfect_competition&quot; rel=&quot;nofollow&quot;&gt;Perfect Competition&lt;/a&gt;.  Your postulate that as a firm gets market power it necessarily reduces production is the natural consequence of learning about economics in an academic vacuum, decoupled from common sense or experience of how the real world actually works.

I like your very well reasoned responses to the other points of my posts.  Given the tone and general level of intellectual discourse evident in your reply, do you want to go ahead and call me a nazi now and get it over with?</description>
		<content:encoded><![CDATA[<p>As much as I hate to cite wikipedia, have a look at the entry for <a href="http://en.wikipedia.org/wiki/Perfect_competition" rel="nofollow">Perfect Competition</a>.  Your postulate that as a firm gets market power it necessarily reduces production is the natural consequence of learning about economics in an academic vacuum, decoupled from common sense or experience of how the real world actually works.</p>
<p>I like your very well reasoned responses to the other points of my posts.  Given the tone and general level of intellectual discourse evident in your reply, do you want to go ahead and call me a nazi now and get it over with?</p>
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		<title>By: Steve Verdon</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109487</link>
		<dc:creator>Steve Verdon</dc:creator>
		<pubDate>Fri, 12 Jan 2007 19:41:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109487</guid>
		<description>I&#039;m sorry Billy, but you just don&#039;t know what you are talking about.  I didn&#039;t invoke any Coasian types of arguments, nor did I rely on prefect competition or perfect monopoly in ways that are crucial to my position.  Try again.</description>
		<content:encoded><![CDATA[<p>I'm sorry Billy, but you just don't know what you are talking about.  I didn't invoke any Coasian types of arguments, nor did I rely on prefect competition or perfect monopoly in ways that are crucial to my position.  Try again.</p>
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		<title>By: Billy</title>
		<link>http://www.outsidethebeltway.com/archives/market_power_wages_unemployment_and_economic_policy/comment-page-1/#comment-109485</link>
		<dc:creator>Billy</dc:creator>
		<pubDate>Fri, 12 Jan 2007 19:30:02 +0000</pubDate>
		<guid isPermaLink="false">http://www.outsidethebeltway.com/archives/2007/01/market_power_wages_unemployment_and_economic_policy/#comment-109485</guid>
		<description>First, Coasian theory has little place in formulating real world policy; there is no such thing as a perfectly competitive market or a perfect monopoly, and to try to examine market forces in a vacuum is and should be left to idle ivory tower pseudo-intellectualism.  But to address the point, this is not an apt comparison to the New Deal monopolies, because competitive firms are first driven by the profit motive, whereas the WPA programs were driven by a mission to create jobs.  Two very different contexts that directly influence the choice of production levels effected at the firm level.  As for regulatory devices like the NLRA, it is a mischaracterization to say that they existed only to &quot;limit competition&quot; - there were social concerns driving these policies as well as economic concerns.  Viewed in the Chicago school ivory tower vacuum, no, they weren&#039;t the most efficient methods of bringing about economic recovery, but that wasn&#039;t their only goal.

Second, comparing employment protectionism to a state-created monopoly creates a false dichotomy.  The two policy arenas don&#039;t even exist on the same plane, and cannot be analogous to each other.  That&#039;s why no one took the bait the first time around - the analogy makes no sense.  

I do agree that employment protectionism is a terrible idea in the long-term and doomed to failure in any event.  But I question the way it&#039;s been articulated here, you seem to try (unsuccessfully) to score a particular political point against the New Deal policy initiatives rather than making the very salient economic argument against employment and immigration protectionism.</description>
		<content:encoded><![CDATA[<p>First, Coasian theory has little place in formulating real world policy; there is no such thing as a perfectly competitive market or a perfect monopoly, and to try to examine market forces in a vacuum is and should be left to idle ivory tower pseudo-intellectualism.  But to address the point, this is not an apt comparison to the New Deal monopolies, because competitive firms are first driven by the profit motive, whereas the WPA programs were driven by a mission to create jobs.  Two very different contexts that directly influence the choice of production levels effected at the firm level.  As for regulatory devices like the NLRA, it is a mischaracterization to say that they existed only to "limit competition" - there were social concerns driving these policies as well as economic concerns.  Viewed in the Chicago school ivory tower vacuum, no, they weren't the most efficient methods of bringing about economic recovery, but that wasn't their only goal.</p>
<p>Second, comparing employment protectionism to a state-created monopoly creates a false dichotomy.  The two policy arenas don't even exist on the same plane, and cannot be analogous to each other.  That's why no one took the bait the first time around - the analogy makes no sense.  </p>
<p>I do agree that employment protectionism is a terrible idea in the long-term and doomed to failure in any event.  But I question the way it's been articulated here, you seem to try (unsuccessfully) to score a particular political point against the New Deal policy initiatives rather than making the very salient economic argument against employment and immigration protectionism.</p>
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