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Chapter 4. Market Interventions. Link to syllabus. Figure 4.2 p. 105. The Effects of a Price Ceiling. Other standard examples are gasoline, medical care, textbooks. Figure 4.5 p. 110. The Effects of a Price Floor. Standard example is minimum wage. Graph is repeated as Figure 8-8 p. 223.
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Chapter 4. Market Interventions Link to syllabus
Figure 4.2 p. 105. The Effects of a Price Ceiling Other standard examples are gasoline, medical care, textbooks
Figure 4.5 p. 110. The Effects of a Price Floor Standard example is minimum wage. Graph is repeated as Figure 8-8 p. 223.
Figure 8-8 p. 209. Effect of a Minimum Wage on the Labor Market
US has low minimum wages! P. 105 2nd edition, for 2005 or so.
There is a similar analysis for quota restrictions on taxis, on pp. 116-18 Conclusion: feel sorry for people who ride in taxis in New York. .
Application to labor unions. The argument is made that labor unions function by artificially raising wages, by restricting access of workers to certain jobs (i.e. union shop). This might be considered the anti-union view. There is also a pro-union view, which evaluates labor unions as defenders of workers’ rights to a safe workplace, non- discrimination, and see unions as a means of helping workers through education.
Libertarian Philosophy No government intervention, at all. mt believes that in the US one cannot find politicians who consistently support a libertarian position, on issues such as: • Gun Control • Abortion • Child Pornography • ‘Illegal’ drugs • Immigration
