[lbo-talk] What's the deal with conservatives, economists, and the minimum wage?

[Doug Henwood]

On Jan 18, 2007, at 7:25 PM, Jordan Hayes wrote:


>> When you raise the price of something you reduce the  demand for  
>> it, whether it's porridge or labor.
>
> My favorite counter-example of this "well known truth" is the pre- 
> listing action in hot IPOs.  Raise the price?  BIG increase in demand.

Yup. After I sent that, regretted not including a PS on asset prices:  
a glaring exception to the rule. Rising stock prices stimulate  
demand; real estate too. And vice versa.

Doug