RE: Re: [Pen-l] The fundamental crisis response. was Ecological creditcrunch

["David B. Shemano" <dshemano@xxxxxxxxxx>]

Eugene Coyle writes:

>> No austerity program!  If we cut working time -- going to a four day
>> week of 8 hour days, for example -- WITH NO CUT IN PAY -- that is not
>> austerity.  People's pay remains the same, they are actually
>> financially better off because of a significant drop in expenses.  I
>> can elaborate on that.
>> 
>> So what happens here?  Profits drop -- the income distribution could
>> be significantly improved.  But the income taken from the owners is
>> distributed to the workers as time, not money.

Are businesses, on average, less profitable today than they were in 1850?  Is there any standard and relatively noncontroversial study of the economic consequence of the imposition of the 8-hour work day (or other similar limiitions) that examines the effect on profits?  My intuition is that profits would drop in the short run, but the effect would dissipate over time.  

David Shemano

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