Wednesday, April 4, 2018

Tyler Cowen Doesn't Believe in Supply and Demand

Tyler apparently thinks labor markets don't clear.

He writes:
My personal view still is that the next generation of firms likely will create fewer jobs, and aggregate output and employment will be lower. 
He then goes pro-minimum wage:
 But on the pro-minimum wage side, you should consider that those immediately affected by the wage hike do seem better off, and their higher income in the meantime may itself bring some efficiency-enhancing gains.
I discuss the problem with Tyler's thinking on the minimum wage here:

-Robert Wenzel  


  1. Given Don Boudreaux's views on these points, it will make for an interesting discussion in the faculty lounge at George Mason.

  2. This is basic price theory. Everyone someone says 'the state should blah blah blah...' all I hear is "I believe in magic."

    1. Yeah and how often does Theory live in the real world of monopolistic, crony driven oligarchies?

    2. All the time. Real world crony capitalism does not negate price theory, it ignores price theory and we all have a lower standard of living because of it.

  3. "and their higher income in the meantime may itself bring some efficiency-enhancing gains"

    What the hell does that mean?

  4. I like this video because it goes beyond the basics for those of us who understand the Austrian view. It is thought provoking. Keep making more videos to respond to the Slick Lefties. Good job!

  5. And letting in any turd world savages will also help raise wages and standard of living. It's a libertardian given.

  6. If the government restricts who can do business the price of labor will go down because there will be less of it needed than there otherwise would be. If government allows many people into the country above and beyond what is necessary for additional needs or when there is no additional need then the price of labor will go down. If government restricts how little people can be paid while the price of labor is falling then people will be unemployed.

    Government in the USA is currently doing all three.