Nope, it wasn’t just a typo then

Tom Parker says:
February 19 2020 at 11:15 am
‘ I really cannot see the price of labour rising significantly though: in sectors such as care and hospitality margins are already very small and there is strong price inelasticity ‘

Strong price inelasticity means that demand doesn’t change much in response to a change in price. Surely therefore there is ample room for wages to rise without affecting demand.

Reply
Richard Murphy says:
February 19 2020 at 11:23 am
How does that work when businesses are on tight margins Tom?

Reply
Nick Carroll says:
February 19 2020 at 11:51 am
Richard

Tom Parker is right about the definition – if demand is price-inelastic, it doesn’t change much in response to a change in price.

The sectors that you mention are highly competitive, hence the low margins. Demand may well still be price-inelastic at the sector level, if the whole sector experiences higher wage costs – probably true for care, and perhaps for hospitality as well.

Do note that Richard Murphy was employed to teach economics at a British university just recently.

6 thoughts on “Nope, it wasn’t just a typo then”

  1. Has anyone congratulated Ritchie on his role as AOC’s private tutor?

    Obama claiming credit for Trump’s economy
    https://www.youtube.com/watch?v=ojtnO9UZtB0

    Dems can no longer deny Trump’s success, message change “Obama did it, not Trump”

    Remember, Obama elected Nov 2008 after Bank crash mostly mitigated. Brown was not happy with Obama’s misguided actions, Obama refused to meet Brown “the kitchen chase”

  2. The most unnecessarily used word: “literally”.

    The floodwater was literally inches above the skirting boards
    It took me literally minutes to read the article
    The planning process took literally months to complete

  3. Looks like it wasn’t a typo, I was correct to call EU our enemies, they’re declaring war

    Spanish MEP Luis Garicano has warned UK the EU Parliament will not allow United Kingdom to become a tax haven or laundromat just offshore Europe

    Good luck with that Mr Garicano; shows again why we were correct to leave. Competitors verboten in EU

    EU (pt2): UK can’t have Canada, Japan etc deal as UK too geographically close to EU
    – Seems EU haven’t heard of container ships, all trade by Pony & Cart

    @Jussi

    +1 I held my tongue as criticised Tim too much recently

  4. News

    At least eight people have been killed and five others have been injured by gunfire in the German town of Hanau, east of Frankfurt
    https://www.youtube.com/watch?v=ZzipKxrEwxA

    20% of Hanau inhabitants are foreign nationals, mostly Turkish workers.

    Diversity…still think its a strength? Welcome to hell, Germany. Remember to thank mama Merkel

  5. Jussi

    “The most unnecessarily used word: “literally”.”

    There’s a good case to be made for that word in the general population.

    In the rarified Humpty Dumpty Murphy world, there are better contenders:

    – eg candidly, staggering, abusive, far-right, neoliberal, Tim Worstall,

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