Archive for March 27th, 2013

Earlier this month I wrote about the minimum wage law (here). Adding to this, Bryan Caplan, Professor of Economics at George Mason University, argues that there is yet another logical fallacy with the minimum wage:

The Myopic Empiricism of the Minimum Wage

Explain why market-driven downward nominal wage rigidity leads to unemployment without implying that a government-imposed minimum wage leads to unemployment.  The challenge is tough because the whole point of the minimum wage is to intensify what Keynesians correctly see as the fundamental cause of unemployment: The failure of nominal wages to fall until the market clears.

Read Full Post »