In a recent interview on The Real News Network, Robert Pollin, UMass Amherst economics professor and co-director of the Political Economy Research Institute, discuss whether or not higher wages would lead to inflation. He claims that theonly way higher wages would cause inflation is if the wages are rise faster than companies’ ability to produce things. Furthermore, he argues that if prices do increase because workers are making more money, are happy and willing to buy things, this would be a sign of a healthy economy. (The Real News Network, 3/7/2010)
Day: March 12, 2010
Gerald Friedman, UMass Amherst economics professor, commented in a story about price-cutting in the art market. According to the article, the art market has been effected by the current world-wide economic slump and, in response, galleries are offering more significant discounts and asking artists to lower their prices. Friedman comments on how this price-cutting may be perceived. “Price is a signal of quality and your commitment that this is good art,” said Friedman. “If you cut the price, it sends a signal that this is not a desirable product. If you are an investor, cutting the price is a sign that no one is going to buy it in the future.” If someone wants to buy work by a particular artist, he stated, they will pay the going rate, rather than switch to other artists. (Huffington Post, 2/26/10)