A Quote by Adam Smith
In raising the price of commodities, the rise of wages operates in the same manner as simple interest does in the accumulation of debt. Our merchants and master manufacturers complain much of the bad effects of high wages in raising the price, and thereby lessening the sale of their goods, both at home and abroad. They say nothing concerning the bad effects of high profits; they are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.
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A rise of wages from this cause will, indeed, be invariably accompanied by a rise in the price of commodities; but in such cases, it will be found that labour and all commodities have not varied in regard to each other, and that the variation has been confined to money.
People hired by government know who is their benefactor. People who lose their jobs or fail to get them because of the government program do not know that that is the source of their problem. The good effects are visible. The bad effects are invisible. The good effects generate votes. The bad effects generate discontent, which is as likely to be directed at private business as at the government.
Experience demonstrates that there may be a wages of slavery only a little less galling and crushing in its effects than chattel slavery, and that this slavery of wages must go down with the other.
Since we own our bodies, we also inevitably own the effects of our actions, be they good or bad. If we own the effects of our actions, then clearly we own that which we produce, whether what we produce is a bow, or a book - or a murder.
The fact is that the culture does not have only positive effects on our intellectual and moral functions but also negative effects.
Requiring the payment of higher wages will lead to a loss of some jobs and a raising of prices which drives companies to search for automation to reduce costs. On the other hand, those receiving higher wages will spend more (the marginal propensity to consume is close to 1 for low income earners) and this will increase demand for additional goods and services. Henry Ford had the clearest vision of why companies can actually benefit by paying higher wages.
In high school and college, I'd set a bunch of goals for myself. I wanted to be the lead effects supervisor on one of these really big, innovative visual effects productions, something on the scale of a 'Star Wars' movie. And I wanted to work on a project that wins the Academy Award for best visual effects.
The impact of a minimum wage depends on how high it is to average wages. If you have too high a minimum wage, it will hurt job creation, and you will have negative job effects.
You can't tell me you can make any system or country work with low wages and high prices, and high wages with high prices don't mean anything when the prices eat up the wages and don't leave anything over.
When you see evil do not form ideas that are in the likeness of that evil; do not think of the evil as bad, but try to understand the forces that are back of that evil—forces that are good in themselves, though misdirected in their present state. By trying to understand the nature of the power that is back of evil or adversity, you will not form bad ideas, and therefore will feel no bad effects from experiences that may seem undesirable. At the same time, you will think your own thought about the experiences, thereby developing the power of the master mind.
We look into mirrors but we only see the effects of our times on us - not our effects on others.
A rise in wages, from an alteration in the value of money, produces a general effect on price, and for that reason it produces no real effect whatever on profits.
Our economy continues to struggle with slow economic growth, high unemployment and stagnant wages. "Obama care's" raising costs. That's making it harder for small businesses to hire. In short, it's a train wreck.
Man is made for science; he reasons from effects to causes, and from causes to effects; but he does not always reason without error. In reasoning, therefore, from appearances which are particular, care must be taken how we generalize; we should be cautious not to attribute to nature, laws which may perhaps be only of our own invention.
It appears to me that one great cause of our difference in opinion on subjects which we often discuss is that you have always in mind the immediate and temporary effects of particular changes, whereas I put these effects quite aside, and fix my whole attention on the long-term effects that will result from them.
There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.
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