I have a new column:
Why We Need to Raise the Minimum Wage, by Mark Thoma: It would be nice if labor markets worked the way they do in economics textbooks. Market forces would cause workers to be paid an amount equal to the value of what they produce – what economists call the value of their marginal product – and wages would rise one to one with both changes in inflation and changes in productivity.
Of course, the real world doesn’t always work this way. ...
Worried my example is too simplistic.