In fact, minimum wage earners tend to put a greater portion of their earnings back into the local economy vs. savings and increases help or at least don’t impact particularly negatively small business. Neoclassical economics is a joke.
It was a populous example and if you want to get into the weeds on it we could, but it wasnt the important part of the comment.
I love how you guys claim that sort of economics is dumb as you cant afford a house and to feed yourselves. Modern monetary policy is working great!!
Our current economic situation is the product of decades of regulation cutting supply side (aka neoclassical) economics championed by the likes of Thatcher and Reagan, which still dominates today. You know where housing is not unaffordable? Vienna, Austria. A place where better than half the residents live in social housing. The product of a strong government and regulation.
So your theory is that housing is so expensive because of less regulation? And if we had more regulations in how houses are built housing would be cheaper?
