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(1,532 posts)
Sun Jan 8, 2012, 11:32 AM Jan 2012

Economics. I've just figured it ALL out. From one very insightful paragraph [View all]

Which was:

In his Presidential Address to the American Economics Association (AEA) Mankiw used economics-speak to explain why janitors don’t deserve a living wage while Wall Street executives deserve billions. “Under a standard set of assumptions, a competitive economy leads to an efficient allocation of resources…it is also a standard result that in a competitive equilibrium, the factors of production are paid the value of their marginal product. That is, each person’s income reflects the value of what he contributed to society’s production of goods and services. One might easily conclude that, under these idealized conditions, each person receives his just deserts.” Oh.


http://www.newrules.org/equity/article/occupy-economics-departments

And here's my epiphany re non-Keynesian economists: It's all just pretty words intended to provide a fictional basis and foundation for whatever it is they want it to say and mean. In fact, CLEARLY, John Kenneth Galbraith had it exactly right:

The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. - John Kenneth Galbraith

That paragraph can be found in this very good read: Occupy Economics Departments http://www.newrules.org/equity/article/occupy-economics-departments
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