An Economics Reading List

Wages and the Marginal Product of Labor

Bastiat, Frederic, Economic Harmonies, Chapter 14

• • Surprisingly early description of wages as providing insurance as compared to the risky returns of business owners, who, as residual income claimants, guarantee the employees a consistent wage in exchange for the owners’ shouldering the risks. See also

  Brief Review

  of this book.

Bastable, Charles F., Public Finance

Brief ReviewClark, John Bates, The Distribution of Wealth. The definitive classic on the marginal product of labor.

Brief ReviewNewcomb, Simon, The A B C of Finance. The effects of inflation on wage contracts.

Brief ReviewWicksteed, Philip H., The Common Sense of Political Economy. In particular, Book I, Chapters 5,8,9, and Book II, Chapters 5-6.

Brief Review