Higher minimum wages are creating more jobs (with Michael Reich)
Pitchfork Economics with Nick Hanauer
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The Importance of a Minimum Wage
Buchanan and many other economists worked in a with an economic model that's a perfectly competitive model. That means in practice that employer can hire all the workers that they want at a given wage. And so if the wage were to be raised above that value of marginal product, then employers would rather shut down because they'd be paying more than they're getting from hiring additional worker. But increasingly in the last 10 to 15 years, many economists have been finding that employers actually have the power to set wages.
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