Kevin Williams at NRO Exchequer on Supply-Side

Mr. Williams gives an able defense of it here.

This quote, struck me.

American labor unions and their friends in Washington could learn something about productivity from their German counterparts. Consider the fact that of the world’s largest exporting nations, only a few are low-wage countries: Among the world’s 15 top exporters, only one is a truly poor country (China). The rest are mostly wealthy, high-wage countries, including the United States, Canada, Singapore, Belgium, etc. Prominent on that list is Germany, the world’s No. 2 exporter, a manufacturing powerhouse that ships out more goods than the United States with less than one-third of the population. As Matthew Yglesias points out, German unions have been engaged in the opposite of the profit-destroying extortion favored by their American counterparts, working closely with firms to practice what Yglesias calls “very severe wage restraint,” which is another way of saying “improving labor productivity.” Germany’s median household income is not as high as the U.S. median, but Germany is hardly a poor country, and many a job-seeking industrial worker would, I suspect, be happier with German opportunities at German wages than with American opportunities at American wages. If U.S. labor leaders were as intelligent as they are power-hungry, they’d be encouraging both Washington and Wall Street to create conditions favorable to even more capital investment, especially investment in hard capital such as equipment and facilities. That is where jobs and wage growth come from.

That stat blew my mind.

Fwiw, in another post, Mr. Williams links to the U.S. Bureau of Economic Analysis which I never knew even existed.

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Posted on July 10, 2011, in economical. Bookmark the permalink. Leave a comment.

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