Monthly Archives: April 2016

Geld Zug: WHY ARE U.S. WAGE COSTS RISING?

Every diligent student in Economics 101 learns how to use supply and demand curves to show that legislating for minimum wage rates tends to reduce total employment... ...what these diligent students don't know yet is that the real world is often reluctant to behave the way that economic theory says it should. Supply and demand curves are theoretical abstractions, and the straightforward conclusions of economic theory depend on several simplifying assumptions which usually aren’t true in the real world... ...in recent earnings guidance from US retailers and restaurant chains, management has suggested that rises in the minimum wage will cut [...]

2016-04-01T17:18:16+00:00 April 1st, 2016|