Obama might be the dumbest president we have ever had.

[Avinash_Tyagi]

They did not argue that increases in productivity will increase employment. They used productivity to figure out what wages would have been. If wages are higher than productivity, labor will be shed. If wages are artificially increased to the degree that they were by Hoover and then by Roosevelt, then this will markedly decrease employment.

Here's what they argue, was that between 1929 and 1939, productivity rose 30% and that labor was down 21% and that it was an above market wage that kept employment depressed



You argue that wages were artifically increased by FDR to a level that resulted in increased unemployment, however as the graph shows wages continued on the same trend growth as always without being inflated beyond where they should have been.

Wages are sricky jackson, employees don't expect to see their wages decline and they expect to see wage increases over time, as the graph shows the argument that you are using that wages were inflated doesn;t seem to exist in the trend line. You can argue that wages were kept up when they shpuld have fallen, but that assumes that employers will cut wages instead of workers, if i'm an employer the last thing I want to do is cut wages, because it hurts moral and may laed to strkes and work stoppages, I will cut workers and hours before wages.