The other day, FLG read this NYTimes editorial and scratched his head at the same passage that Caroline Baum over at Bloomberg did:
In March, every Republican in the House voted against a measure to raise the minimum wage. “When you raise the price of employment, guess what happens? You get less of it,” said Speaker John Boehner in February, espousing a party-line theory that most economists agree has been discredited.FLG actually read it twice to make sure he read it correctly. Look, FLG isn't one to think that a moderate increase in the minimum wage is going to have disastrous effects on the labor market. But he also knows that a price floor results in a surplus because the quantity of labor demanded would decrease and the quantity of labor supplied would increase. This isn't some crazy party-line theory that has been discredited, but Econ 101 and all that is required to graph it are some straight lines.
So, thinking this, FLG had to click on the link asserting the discredit of basic price floor theory. Lo and behold, it links to a CEPR report. Now, for those of you who don't know, CEPR is the Center for Economics and Policy Research headed by Dean Baker. (Although, he wasn't the author of the paper.) FLG has said good things about Dean Baker in the past, but let's be clear, he's a man of the left. The equivalent would be to dismiss Nancy Pelosi was a left-wing ideologue for suggesting that deficit spending can stimulate the economy, cite a Cato or Heritage paper, and claim most economists disagree. It's fucking nuts. (Although, FLG must, in the interest of fairness, state that he assumes the Wall Street Journal has probably done just that, but it's still fucking nuts.)