Debunking Economics Part 3: Work and Wages

freedom this time

A common argument from neo-classical economists is that minimum wage legislation causes unemployment. The same economists regard this to be incontrovertible, as inevitable as the proposition that the angles of a triangle sum to 180 degrees, given Euclid’s axioms. But assumptions matter! (see Part 2) For example, the angles of a triangle don’t add up to 180 degrees if Euclid’s axioms are invalid, which they are on curved surfaces:

So,  to prove that minimum wages cause unemployment, have economists done the equivalent of assuming that the earth is flat? I’ll argue that yes, they have!

Economists have their own version of geometry – one often sees a “gemoetric proof” that minimum wages cause unemployment, looking something like this:

The above picture is taken from this article, which also makes some criticisms of the assumptions going into the “proof” that a minimum wage (Wmin above) greater than an “equilibrium…

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