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[badlydrawnjeff.livejournal.com]

Comments

[badlydrawnjeff.livejournal.com]

Except this assumes that money flows back into the place offering the higher wage. It's why that multiplier never works in reality.

[lafinjack.livejournal.com]

You're saying that no wage increase ever goes back into the economy, which means basic inflation broke the economy irrevocably a century ago and we're now back to the hunter/gatherer lifestyle.

[badlydrawnjeff.livejournal.com]

I'm saying that the idea that wage increases go back into the economy is overstated, negated by the lower employment hours, and results in a net negative.