1)my textbook is trying to kill me. I nearly fell of my chair when I read the following paragraph:
Our discussion of resource pricing is the cornerstone of the controversial view that fairness and economic justice are one of the outcomes of a competitive capitalist economy. Table 12.7 demonstrates, in effect, that workers receive income payments (wages) equal to the marginal contributions they make to their employers’ outputs and revenues. In other words, workers are paid according to the value of the labor services that they contribute to production
It does no such thing.
That Table 12.7 is only showing that given two resources, their price, their productivity, and the resulting profit, you can calculate the least expensive and most profitable combination of the two resources, which indeed tends to fall in the area where marginal revenue of adding a unit of a resource = marginal cost or adding a unit of a resource. Which has fuck all to do with real markets. Because in real markets, a hell of a lot of the necessary information is impossible to come by (for example, accurately calculating marginal revenue from a unit of labor is near impossible. seriously, how does one calculate the marginal revenue of CEO A over the marginal revenue of CEO B? one doesn’t, and can’t considering their pay is established a priori, before they’ve had a chance to create any marginal revenue at all); plus, they disappeared the ever-necessary ceteris paribus that accompanies such mathematical games with very limited variables. What may be true for a mathematical game with only a few variables will not be true in a real-world situation with fuckloads of variables, including human error and human biology.
2)And not only is the content of the textbook trying to kill me, so is their language-abuse:
It is no coincidence that the service occupations dominate the list [of 10-fastest growing US occupations for 2006-2016]. In general, the demand for service workers in the US is rapidly outpacing the demand for manufacturing, construction, and mining workers.
well, no, it’s certainly not a coincidence. That’s because you can’t have a coincidence with only one variable. You need at least two, so that they can, you know, coincide. Of course, it could be that the paragraph meant to say “it’s no coincidence that service occupations dominate the list while the demand for service workers is rapidly outpacing…”, but that would be so blatantly obvious, it would not be worth the paper it’s printed on. I’m thinking the word they were looking for here was “surprise”, as in “It’s no surprise that the service occupations dominate the list.”
3)Unrelated to my text-book, I’ve found the term for a phenomenon I’ve been observing in people who talk and write about economic issues: goal displacement.
Goal displacement is when the means to achieve a goal either become the goal, or become more important than the goal. So, when I read articles about the Chinese economy were the writer says that China needs to get its population to save much much less of its income to increase consumer-spending to improve the economy, I know that the writer is suffering from goal displacement: a healthy economy is a means by which the well-being of people is to be accomplished. to diminish the well-being of people to make an “improve” the economy is turning the means of achieving something into a goal unto itself.