From: d@d.d   
      
   Hello...   
      
      
   Read again, i correct a typo..   
      
      
   More about real wages..   
      
      
   I talked yesterday about the real wages by saying the following:   
      
   1. We can reduce the payroll without laying off, by lowering wages. It   
   will be argued that lowering wages will reduce purchasing power. But   
   this is not certain since the effort of competitiveness is driving down   
   prices. We could theoretically keep the same standard of living with   
   lower wages and lower prices!   
      
   2. We can increase competitiveness without reducing the payroll or the   
   number of workers. This requires basic research, applied research to   
   develop new manufacturing processes or new products, investment and   
   training. It is in fact the best solution, that which leads to increased   
   production, wages, employee skills and standard of living.   
      
      
   But i have not talked about the following:   
      
      
   The Effects of Population Growth   
      
   Population growth brings growth in the supply of labor,   
   but it does not change the demand for labor or the production   
   function. The economy can produce more output by using   
   more labor, but there is no change in the quantity of   
   real GDP that a given quantity of labor can produce.   
   With an increase in the supply of labor and no   
   change in the demand for labor, the real wage rate   
   falls and the equilibrium quantity of labor increases.   
   The increased quantity of labor produces more out-   
   put and potential GDP increases.   
      
      
      
   Thank you,   
   Amine Moulay Ramdane.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)