Seattle's new minimum wage hasn't raised retail prices

[Aus22]

Dogtowner misunderstands the higher propensity to consume by the lower income earners. Openmind has shown that the poor are more likely to spend any increase in income than the rich. Therefore If you lower the rent of the poor they are more likely to spend what they save on other goods and services than the rich. In fact they might invest in goods to start a business as in my example of the public housing tenant with a trailer.

 

[The Scotsman]

The wastebin of failed theories ?

Not really, just one of many tools in the economist’s armoury. The fundamentals are sound given a specific scenario and with a view to a desired outcome - Keynesian theory and its myriad spinoffs are not a system of government or economic snake oil.

 

[The Scotsman]

Dogtowner misunderstands the higher propensity to consume by the lower income earners.

I don't think he does...

Openmind has shown that the poor are more likely to spend any increase in income than the rich. Therefore If you lower the rent of the poor they are more likely to spend what they save on other goods and services than the rich.

I love that phrase "the rich"...... Anyway... In that context i.e. just giving cash to "the poor" explain the systems involved in banking and investment and how productivity lags income and how the shortage of aggregte supply responds to or impacts the marginal propensity to import and the role of "the rich" OR conversely how banking and investment impacts demand, labour capital and inflationary pressures and "the rich".

 

[dogtowner]

Dogtowner misunderstands the higher propensity to consume by the lower income earners. Openmind has shown that the poor are more likely to spend any increase in income than the rich. Therefore If you lower the rent of the poor they are more likely to spend what they save on other goods and services than the rich. In fact they might invest in goods to start a business as in my example of the public housing tenant with a trailer.

You did not suggest lowering the rent but upgrading the dwelling. To do what you now suggest you could further lower the rent on the less opulent places.
What's it going to be aussie ?

 

[Aus22]

I should have not use terms like rich and poor. Keynes refer to local and higher income. The example I gave was not a poor man. Dogtowner I do not know what he is using his trailer for but it is loaded. It is not to repair his house as he dose not own it. The government who owns the dwelling will decide whether to upgrade it. At the moment is does whatever the BODY CORPERATE of owners say.