bitchy asides...

MScoleman at aol.com MScoleman at aol.com
Sun Jan 24 08:23:05 PST 1999


In a message dated 99-01-21 23:46:57 EST, you write:

<< > In fact, the unemployment rate has fallen significantly following the recent

> increases in the minimum wage. The argument, which can even be found in some

> mainstream texts these days, is that an increase in min wage increases

> consumption spending, which increases effective demand, creating more jobs.

Interesting, about five years ago I based my Introductory Economics

term essay on this hypothesis, which I thought I'd just pulled out

of my arse ;)

I'm really curious what any of the list economists have to say about

this.

wendy >>

the text I was thinking of is Baumol and Blinder. maggie coleman mscoleman at aol.com



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