The Human Action Approach to Economics

Government-mandated minimum wages impose a lower limit on what employers can pay their employees. The economist concludes that 20% of all workers, supporting 35% of the population, currently earn less than $10 per hour. According to this collectivist approach to economic analysis, the aggregates are the causal agents in economic phenomena. Knowing that human action is the real driver of human affairs, the sound economist does not analyze the world through aggregate quantities.