Tuesday, September 17, 2013

Jobs, Jobs, Jobs and Ronald Coase

While President Obama is floundering in Syria, Americans are thinking about jobs, writes Salena Zito from a farmers market in rural Pennsylvania. People are learning about canning vegetables while they worry about jobs and the economy.
"We keep waiting for the White House to talk about jobs in a meaningful, constructive way so that our families, communities and schools stop crumbling," said one young woman as she contemplated buying fresh honey.
Yeah, let's do that. And there's no better time to do that than right now with the death of economist Ronald Coase. He's famous for his theory about "The Nature of the Firm" and his theory about "The Problem of Social Cost."
His idea about the firm was that people work at corporations because it reduces their transaction costs. A wage laborer doesn't have to market and buy and sell and all that hard stuff. He just has to show up and do his job.

No comments: