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Thursday 730

Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 28 of 36 Unemployment Section 20 of 21 … Henry Ford introduced modern techniques of production to the automobile industry. Ford, rather than building expensive cars for the rich with small teams of skilled craftsmen, he built inexpensive cars for everyone on assembly lines with unskilled workers who performed repetitive simple tasks. The output of this assembly process was the Model T Ford. … In 1914, Ford introduced another innovation, the $5 workday. It was about twice the going wage for unskilled workers, far above the equilibrium wage. When the daily $5 wage was announced there were long lines of job seekers outside the Ford factories. The number of workers willing to work at this wage far exceeded the amount of workers Ford needed. Ford's high-wage policy had the effects predicted by efficiency-wage theory, absenteeism fell, turnover fell, and productivity r...
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Wednesday 729

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 28 of 36 Unemployment Section 18 of 21 … Here we consider four aspects of efficiency wage theory, each suggests a different explanation for why firms may want to pay above-equilibrium wages -1- worker health -2- worker turnover -3- worker quality -4- worker effort … -3- Worker Quality Firms want talented workers but because firms cannot perfectly gauge applicants’ quality hiring is somewhat random. When a firm offers a high wage it attracts better workers to apply for its jobs thereby increasing the quality of its workforce. If the firm offers an equilibrium level wage the most competent applicants may choose not to apply because they are more likely to have better opportunities than less talented applicants. If this influence of the wage on worker quality is strong enough it may be profitable for the firm to pay a wage above the equilibrium level. … -4- Worker...
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Tuesday 728

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 28 of 36 Unemployment Section 18 of 21 ... Here we consider four aspects of efficiency wage theory. Each suggests a different explanation for why firms may want to pay above-equilibrium wages. -1- worker health -2- worker turnover -3 - worker quality -4- worker effort … -1- Worker Health Better paid workers eat a more nutritious diet so are healthier and more productive. A firm may find it more profitable to pay high wages and have healthy, productive workers. The worker health aspect of efficiency wage theory helps explain some unemployment in less developed countries where inadequate nutrition can be a problem. In these countries firms may worry paying low wages would adversely influence their workers' health and productivity so they pay higher wages to workers. But this higher wage payment causes a surplus of labor and unemployment because firms employ a few...
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Monday 727

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 28 of 36 Unemployment Section 17 of 21 ... In this chapter we discuss four explanations for long-run unemployment -1- frictional unemployment -2- minimum wage laws -3 - unions and collective bargaining -4- efficiency wages … -4- Efficiency Wages The theory of efficiency wages holds firms can operate more efficiently and profitably if they pay wages above equilibrium level. The unemployment that arises from efficiency wages is similar to that arising from minimum-wage laws and unions. Unemployment results from paying wages above the level that balances the quantity of labor supplied and the quantity of labor demanded. An important difference is efficiency wages are set at the discretion of the firm, while minimum-wage laws and union wages are forced on the firm. … Efficiency wage theory holds government and union forced wage levels are unnecessary, because firms...
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Scot and Fumiko pictures and information

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  Fumiko Scot's information: Weight at 166 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, able eat good food and get enough exercise. Now spend most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on back to Staine...
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HAT Manifesto Part 1/2 - Rubric Cube - 260405 edit

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  “The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents wou...
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