The Dark Cloud of the Minimum Wage

Megan, like many before her, is trying to explain the harmful effects of the minimum wage. I fear that she too will flounder on the shoals of general economic ignorance. She properly brings in the subject of price controls in general and then rent controls in particular, and she makes this “on the money” statement:

“…price elasticity is almost always much greater over the long run than short term.”

That pretty much makes the issue hopeless. Popular thinking is notoriously short term and politicians are extremely responsive to the current popular view. Maybe it’s a waste of time to try to educate people on the true impact of price controls like the minimum wage. Without this kind of knowledge, people will forever wonder how we got into the current mess (whatever it happens to be) and blame whatever office holder is handy. They will continue to make poor choices. It may be irrational, unpredictable, and self-defeating, but it has the merit of disrupting whatever oligarchy happens to hold the reins of power. Even the darkest cloud…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: