The Big Mac Theory of Development, by Charles Kenny, examines the wages earned compared to the price of a Big Mac in the United States and India. The article concludes that factor mobility is key to raising wages and immigration laws should be loosened. I believe this article confirms the monopsony model of wage determination and reaffirms how competition equalizes wages across borders.
In Eat The Rich, writer, P. J. O'Rourke, examines countries all over the world to find the answer to the question, "Why are some countries poor?" This humorous book cites corrupt governments and infrastructure as two culprits that rob poor countries from riches.
No comments:
Post a Comment