Re: What exactly do they teach in college economics?
However, in econ, there are usually at least 3 sides to every story, and you can almost always create some sort of cause/effect chain to demonstrate a point. But I just can't seem to put one together to demonstrate how higher min. wage would creat less unemployment in the short term. Maybe something to do with high wages causing higher prices which cause inflation, thus mitigating the debts of impoverished nations? I'm not even sure that can take you anywhere. Maybe someone smarter than me can chime in. In the long run, increasing minimum wage should have no effect, as price levels should simply just adjust accordingly. Of course, this is all economic theory, which in the real world not reliable.
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