The Great Depression, according to Temin, was the result of a shock to the system produced by World War I, coupled with an ideologically constrained response that exacerbated a bad situation and turned it into a crisis.
In the 1930s, they were doing austerity because they were adhering to the ideology of the gold standard. In their minds, austerity was the only way to preserve the gold standard, which would eventually restore prosperity.
Costco's pay is what economists call an "efficiency wage."
"Paying workers more than the going market rate for their skill level can bring a lot of benefits to your company," McArdle writes. "You get lower turnover and, arguably, better on-the-job performance."