Re: What’s the deal with conservatives, economists, and the minimum wage?
On Jan 18, 2007, at 7:25 PM, Jordan Hayes wrote:
When you raise the price of something you reduce the demand for
it, whether it’s porridge or labor.My favorite counter-example of this “well known truth” is the pre- listing action in hot IPOs. Raise the price? BIG increase in demand.
Yup. After I sent that, regretted not including a PS on asset prices:
a glaring exception to the rule. Rising stock prices stimulate
demand; real estate too. And vice versa.
Doug