Posts tagged with: Megan McCardle

baby1I love babies. And because I love babies, I love economic growth. I’ve explained that connection several times on this blog already, but there is another oft-overlooked way that economic growth helps babies.

In the early 1900s, there were more babies than parents could feed. Illegitimate infants suffered high rates of mortality from murder (usually by the mother) or neglect (as wards of the state). Today, a hundred years later, the situation is drastically different. As Megan McCardle notes, adoptable infants are so rare that parents wait years and pay tens of thousands of dollars to get one. What explains the change?

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wmartIn light of the ongoing discussion over fast-food wages, I recently wrote that prices are not play things, urging that we reach beyond the type of minimum mindedness that orients our imaginations around artificial tweaking at the bottom instead of authentic value creation toward the top. Prices don’t equip us the whole story, but they do tell us something valuable about the needs of others and how we might maximize our service to society.

But though I have a hearty appreciation for the role that low-wage employers like McDonald’s play — due in large part to my 5-year stint working for The Ronald — I’m also grateful that other companies like Costco are able to provide higher wages to many low-skilled workers.

When we observe such differences — one prosperous company paying $7 per hour while another pays $12 — it can be easy to get worked up, pointing our fingers at greedy executives, idols of efficiency, unwise allocation of company funds, etc. Yet while any assortment of these drivers may indeed contribute to how wages are set, and though executives bear heavy moral responsibility on such matters, it’s helpful to remember that (1) we’re greatly limited in understanding the books of the companies we critique, and (2) executives aren’t the only ones influencing prices.

Over at Bloomberg, Megan McCardle does a marvelous deep-dive on this very sort of thing, starting with a comparison of Costco and Walmart wherein she ponders why the former offers higher wages than the latter.

A summary:

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