paradox - Economics Students Society of Australia

paradox

A collection of 2 posts

The Rebound Effect: Shocking (In)Efficiency

The Rebound Effect: Shocking (In)Efficiency

In 1776, engineer James Watt introduced a new type of steam engine so much more efficient in its coal usage that it immediately rendered its predecessor obsolete. Goods and services which used a steam engine could approximately double their output for the same amount of fuel. One would have expected

That old chestnut: revisiting the minimum wage

That old chestnut: revisiting the minimum wage

While reading fellow ESSA contributor Joey Moloney’s article I came across the under-consumption paradox. This was something that I had grappled with before in trying to reconcile the microeconomic lessons about price floors and the minimum wage with macroeconomic lessons about aggregate income and expenditure and the Keynesian Cross.