NBarnes12
Rookie
- Jun 21, 2012
- 37
- 6
- 1
Why can't the other side understand simple economics? Please, someone tell me how the programs enacted under their administrations justify, if you will, a capitalist society? It recently came to me that they simply can't. It's impossible.
Look at the minimum wage law. Although it had well intentions (Like most of their programs), its results are devastating. But, we'll just stick to the facts and not debate the effects and results it has on the US economy.
Any person who has ever studied simple economics knows about supply and demand. It's a basic function for a capitalist nation. But, it seems to me that one side never really got this part of economics 101. Look at supply and demand quickly. Supply and demand generates an equilibrium point, where the producer and consumer are both satisfied with whatever that price may be. Just like in supply and demand for labor, the employer pays a worker for his labor, and that wage must justify his labor or else he wouldn't work. However, the minimum wage law tinkers with the invisible hand and sets a wage above the wage that would prevail in the free market (The market equilibrium point).
Now, once this happens, you have employers supplying less labor than the demand for labor, which results in unemployment. THESE ARE FACTS that can't be disputed. We will not talk about the law being a good one or not.
My simple question to everyone is: Doesn't this law contradict the very capitalist nation we claim to be?
Look at the minimum wage law. Although it had well intentions (Like most of their programs), its results are devastating. But, we'll just stick to the facts and not debate the effects and results it has on the US economy.
Any person who has ever studied simple economics knows about supply and demand. It's a basic function for a capitalist nation. But, it seems to me that one side never really got this part of economics 101. Look at supply and demand quickly. Supply and demand generates an equilibrium point, where the producer and consumer are both satisfied with whatever that price may be. Just like in supply and demand for labor, the employer pays a worker for his labor, and that wage must justify his labor or else he wouldn't work. However, the minimum wage law tinkers with the invisible hand and sets a wage above the wage that would prevail in the free market (The market equilibrium point).
Now, once this happens, you have employers supplying less labor than the demand for labor, which results in unemployment. THESE ARE FACTS that can't be disputed. We will not talk about the law being a good one or not.
My simple question to everyone is: Doesn't this law contradict the very capitalist nation we claim to be?