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Econ 101 style reasoning doesn't tell us whether the minimum wage or rent control is bad. Only that it's inefficient. It also tells us it will reduce the quan
by JamesBarney 6y ago
Econ 101 style reasoning doesn't tell us whether the minimum wage or rent control is bad. Only that it's inefficient.
It also tells us it will reduce the quantity and quality of jobs and rentals. But whether or not that's the right choice is going to depend on a lot of things theory can't tell us like how elastic the market is or what we value.
- Ericson2314 6y agoDo agree that "inefficiency" and "reductiontion of the quantity and quality of jobs and rentals" from the econ 101 model is not true in the real world? Yes people can value many different things, and I fully support that, but I think before we get to those subjective things it's better to get into the objective parts,