The Minimum Wage – Book Report/Review Example
The Minimum Wage Reaction to Article I believe that the arguments are true, valid andfounded. This is because the author looks at both sides of the cognitive dissonance on minimum wages and maximum rents. The author, Garry Galles, has managed to paint a clear picture of how government has chosen to handle the problems of minimum wages and maximum rents (Galles). I agree with the author that government has acted in a manner that is contradictory to itself by employing countermeasures to its own measures. By introducing higher minimum wages, the government has driven the cost of employment higher and has therefore reduced the number of job opportunities in the market. This has increased employee compensation but has driven up prices and increased unemployment.
I also agree with the fact that the rationale that government has employed has been distorted by cognitive dissonance in the fundamental theoretical framework employed in policy formulation. This fundamental flow creates a redundant loop in which the government takes measures to improve the economy and employs countermeasures against itself.
Reaction to Student’s Response
I believe the student has gained a good understanding of the fundamental theories engrained in the article. He student has supported their arguments with statistical information. They have however diverted from the course of the discussion by introducing a new aspect to the discussion. They have introduced the issue of job ranking or classification. By introducing this, the student fails to close their argument effectively leaving it open ended. However, I agree with the notion against minimum jobs realizing a 100% increase in compensation as this would reduce the number of jobs and increase unemployment rates within the economy.
Galles, Gary. "Cognitive Dissonance on Minimum Wages and Maximum Rents." 15 April 2014. Ludwig von Mises Institute. Print. 15 May 2014. .