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Well, as far as I can tell, minimum wage has been tested, and, contrary to the claims of "rational" economic theory, according to which it should cause unemploy
by js8 11y ago
Well, as far as I can tell, minimum wage has been tested, and, contrary to the claims of "rational" economic theory, according to which it should cause unemployment, it doesn't. I agree that many economists do not completely subscribe to the rational choice, and by the way, many of them do support minimal wages. So my understanding of economics is not an issue here.
- partiallypro 11y ago> So my understanding of economics is not an issue here. Actually it is, because most economists agree that you can raise the minimum wage and have -some- positive outcome. It depends on market elasticity. But, sure you can believe whatever you want. There's a reason why you can raise a minimum wage by $1 with some positive effects (you could still have negative effects,) and not $100 because it would have massive negative effects. It all depends on market elasticity, it's curve. The argument above was basically, 'modern economics isn't a real because it assumes rational actors!,' which is absolute nonsense.