Minium wages, competition and 200 years of success.

[Sanjeev Sabhlok <sabhlok@almaak.usc.edu>]

Snippets on high minimum wages and the role of competition.
-----------------------------------------------------------

>From "God is in the Details" By Robert Samuelson, Newsweek 20th April, 98

"Europe's high unemployment (10 percent) is no mystery. Generous
government benefits reward the jobless for staying idle.  High payroll
taxes and minimum wages discourage companies from hiring by raising labor
costs... 

"The secret of the U.S. economy is that, despite many flaws, its amalgam
of incentives still operates constructively. Companies face competitive
pressures to improve products and profits; people generally do better by
working than loafing; the urge to 'make it' spurs creativity."

Lessons for us:

a)	Keep minium wages to a low level, if it is necessary to have them
	at all.

b)	Keep the economy on its toes and globally competitive.
	
This is the only fool-proof long-term way to succeed. The US has handily
beaten India **even after independence** in per capita income growth, and
it has kept up this performance over nearly 200 years. How can one argue
with such kind of success?
	
A powerhouse of competition and creativity, is this USA, which has
attracted and continues to attract hordes of Indians (most of the people
on this list, for instance); people who abandon their dormant and subsidy
(beggary)-riddled motherland in favor of the land where you can 'make it'
if only you compete hard enough.

PS:

I notice that some (almost all, surprisingly?!) members on this list are
suddenly quiet. Is it that people are not getting these messages, or is it
that people think that this list is my "mouth-piece" (false: this is a
discussion list; I only got it opened because of the great discussions
that were going on earlier; I could continue pouring out my daily ideas
into my book which takes much time to write and revise constantly), or is
it that everyone agrees to what I am saying, or is it that people are too
busy (I get to sleep only an average of 5 hours a day for weeks at a time; 
are you guys busier?). 

A manifesto cannot be built without participation and debate. I thought we
were supposed to tap into each other's brains and come out with points and
ideas. So, please become somewhat more active ...