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It's almost ridiculous to bring up government intervention in labor markets, and I'm not just saying that for effect. A million things skew the labor market aw
by hoopd 11y ago
It's almost ridiculous to bring up government intervention in labor markets, and I'm not just saying that for effect.
A million things skew the labor market away from the theoretical: people are irrational, information is wildly asymmetric, wages are sticky, there aren't an "arbitrarily large number of firms", the factors of labor (people) aren't liquid or mobile, etc.
To pick 'price floor' from the long list of things that distort the labor market while ignoring the rest is strange enough that I chalk it up to politics any time I hear it.