This Yearβs Nobel Prize Is Going To Change Everything...
Economics Explained
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The Application Over Theory Approach in Economics
This year's winners in the field of economics have exemplified this application over theory approach to generate some insights that could fundamentally change the way we work. Most economists try to simplify labor's role in the economy as just another good or service, they assume there is a negative relationship between wages and employment. By reducing the minimum wage, it makes it cheaper for businesses to employ people, therefore they will employ more of them. This has made bor more commonly called jobs, determining everything from where they live to who they vote for.
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