Proof that Paul Krugman has never run a business.

May 4th, 2009

In this editorial, sildenafil capsule Paul Krugman argues that cutting wages won’t make a company more competitive. (Because everyone else is cutting salaries as well.)

But outside the auto industry cutting wages is rarely about competitiveness.

Cutting prices is about competitiveness.

Cutting wages is about survival.

Entry Filed under: Observations

2 Comments Add your own

  • 1. John Foust  |  May 4th, 2009 at 3:55 pm

    XYZ management might cut prices. They might not. If all competitors similarly lower prices, will all profits increase? Economics love these sorts of generalizations.

  • 2. capper  |  May 4th, 2009 at 11:15 pm

    Cutting wages can also equate to cutting your own throat.

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