Utopia, you are standing in it!

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Lucas and Prescott ask the big questions

August 9, 2019

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The strength of alternatives to no agreement drives wage bargaining as Alchian and Allen explain: An important truth is that employers compete against other employers, and employees against other employees-not employees against employers, as folklore says. It is the availability of higher-valued alternatives, not the ability to bargain collectively, that increases bargaining power (Alchian and …

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What would you do if you could cut your prices by 25% and still make a profit? Suppose you could pay your workers 25% more, recruit the best and brightest, still make a profit and greatly expand your business and bottom line? A survey on monopsony power of employers by the Council of Economic Advisors …

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Robert Lucas in a famous 1978 paper argued that all unemployment was voluntary because involuntary unemployment was a meaningless concept: “The worker who loses a good job in prosperous time does not volunteer to be in this situation: he has suffered a capital loss. Similarly, the firm which loses an experienced employee in depressed times …

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“The researchers looked at different variables to understand why divorces tend to be filed by women. They suggest three main explanations: Over-exploited wives who do the majority of housework and parenting may feel that they have nothing to lose by leaving. Wives may have already benefited from financial investments made by a husband (for example, …

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