So, part of the test is explaining what our term paper is. Arguments for and against regulation: Invoke principles of the free-market working effectively. So when you impede the free-market, you create inefficiencies (it will cause unemployment). Setting a minimum wage actually causes unemployment. When the free-market is in place, there is a equilibrium point in the market, but it might not be what people need to survive. Raising minimum wage to a “living wage”. Argument for regulation: “All else is rarely equal”. The facts don't correspond to the picture. If you raise the minimum wage, then the demand curve can shift right (creating a higher demand). (against regulation) Deregulated financial market – people know what's best for themselves, and if they suck, they'll go out of business. “These are really smart people, who are we, the government telling them what to do”. When you raise unemployment because of the people on Wall St. Regulated financial market – we bailed out the financial markets (hundreds of millions of innocent
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This note was uploaded on 10/24/2011 for the course ECON 104 taught by Professor Dolenc during the Fall '08 term at UMass (Amherst).