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Sowell's views on Minimum Wage Laws

The Genius of Thomas Sowell

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The Importance of Long Term Effects in the Economy

There's been some great work looking at how capital can substitute for labor, which is another thing that can't happen very quickly in these kinds of situations. But we began with the idea that these models were ill suited to pick up longer run effects. And what we found was very little in the way of these rapid short run effects. When you looked at this in the longer run and you took these kinds of dynamic effects seriously, you did find negative effects and fairly substantial ones.

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