Posts Tagged ‘economic activity’

From first-year economics, I remember a glaring omission by the textbook authors in their criticisms of free market interventions.

According to their models, they demonstrated how:

  • A minimum wage higher than the lowest market wage results in higher unemployment.
  • Quotas and duties on imports reduces overall global trade.
  • An increased government share of a country’s GDP results in less overall economic activity.

But they failed to criticize the biggest price control and intervention in the free market — a central bank. Ask yourself why that is.

Check your economic textbooks and let me know if they’re any different from the ones I’ve seen.

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