Walter E Williams - Capital & Wages

[N330AA]

I'm in favour of the Death Tax. It's probably the only good tax. Adam Smith liked it too.

[jamo387]

Hallady: Let's not forget that the heavy equipment operator is more highly skilled than the ditch digger. He commands higher wages because he enables the firm to be more productive - thereby enriching the employer. All employers wish to be more wealthy therefore the vehicle towards that end (the more productive worker) is in more demand and commands higher wages. Your supply and demand is in perfect alignment with Dr Williams assertion. 

[halladaylover]

(assuming a perfectly free market) wouldn't it simply be the demand and supply of the worker that determines the wages of the worker? williams linking productivity directly to wages throws me off a bit.

[EGarrett01]

@halladaylover

The more productive a worker is, the higher the demand for him.

[bjarnet3]

THIS IS WHY 0% INTEREST RATES IS SO DESTRUCTIVE... It destroys capital... It will eventually wipe out all capital..

TAXES and CENTRAL BANKING is CENTRAL PLANNING...

[The4LA2Baker0]

They get paid more because they know how to operate the machinery. The guy driving the tractor didnt pay for it. any idiot can swing a pick. It takes knowledge and experience to drive a 20 ton potentially deadly piece of machinery.

I agree taxes are out of control and counter productive for the most part, but his reasoning is a bit flawed IMHO.

[agent008t]

@The4LA2Baker0 Perhaps, but if a guy driving a tractor was as productive as the guy swinging a pick, but the guy driving a tractor requested a higher wage as you say, the job simply wouldn't exist, nobody would hire him.

The sole reason why the wages can be higher is because of increased productivity!

[Bronk0Nagurski]

Walter Williams is brilliant. I would love to go to GMU. His ability to make econ understandable and relateable is fantastic. Great Video by the way.

[cooder70]

...and the men with shovels are illegal aliens who get paid under the table.

[christobelcubelo]

we wouldn't have roads if it weren't for taxes

[steve0281]

Yes and no. For most of the 19th century roads were privately constructed. Also, roads are paid for in the US by gasoline tax. If you don't use the product, you don't pay the tax. This is one example of a moral tax. Obviously this is not being applied across the board which makes most taxation immoral.

[darwinkilledgod]

If there were no roads, I would build one and charge people a lot of money to drive on it. Then Steve0281 would see that and think, hell I can build a road near there and charge half as much and take all his business. So I would drop my price to get some customers back...and so on.

I.e. You are wrong, please adjust your beliefs.

[dudemanbearpig]

If you showed this video to a Democrat politician, he'd probably tax the workers operating the machinery and give a handout to the workers using shovels.

[Auggie56]

Somebody tell Obama to hire Walter Williams.

[gdbalck]

Well, it's to late for that. New New Deal on its way I'm affraid :(

[HandyMan101]

@Auggie56 Somebody should tell Walter Williams to fire Obama.

[ruthieboboothie8]

heyyy that's my professor, gmu what!

[RealBloppy]

I'm jealous.

[Rexanglorum]

I studied Economics at CSU, Northridge and our econ department is similar to GMU's department and that style and outlook really make Economics something that is important and also understandable. I am going to study law and I hope that I get into GMU law and can also do a joint masters in econ program or at the very least have a class or two with professor Boudreux, who teaches advanced Law and Economics to law students. Intro to Law and Econ was perhaps my favorite course in undergrad.

[ruthieboboothie8]

if you get into GMU law, that would be amazing, and if you ever have the chance while possible at mason, you should sign up for any and every class you can with Thomas Rustici, he is the man who made me decide to get my degree in Econ

[willzyx1980]

LOL My mom went to CSUN, and I went to GMU!

ruthieboboothie8 is right, you have to take whatever you can from Rustici. He teaches undergrad econ, but even econ grad students sit in on his classes.

[1MSNARA]

There is more to it, the men running the big equipment are drug tested, and if they have haz.mat. carriers permits, they are cleared by Homeland sec. BESIDES the basics.

[LeGioNoFZioN]

here here

[madcowhunter]

Great message. Inconvenient for so "progressive" politicians and anti-populistic