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UnderpantsWeevil ,
@UnderpantsWeevil@lemmy.world avatar

econ101 is a pretty poor argument;

You can argue about the goals of economic policy, but that’s very different from arguing the effects.

What is the response to rising labor demand? Do you

  • Independently raise wages to the bid price?

Or

  • Form a cartel to fix wages below the clearing floor?

The former is the “natural” response you learn about in 101, assuming a naive approach to the problem. The latter is what you learn works best in 201, when your goal is profit maximization.

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