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Economic Consensus

Dec 01, 2006 1:36 PM
Tags: economics, politics

Harvard economics professor Greg Mankiw reviews a survey of economists.

The two most interesting (i.e. unexpected) findings, in my mind:

[Of those surveyed,] 65.0 percent agree that "the U.S. should increase energy taxes."

One issue that fails to generate consensus is the minimum wage: 37.7 percent want it increased, while 46.8 percent want it eliminated.

That two thirds of economists favor raising taxes (rather than relying on the market responding to prices and finding substitutes) is surprising.

That more than a third not only believe in the minimum wage as a net positive (i.e. the extra wages making up for the extra unemployment), but think that increasing it is a good idea — that is shocking.


Comments: Economic Consensus

I think energy is one area where the market fails. People won't look for alternatives until prices on conventional energy jump higher; yet, who wouldn't say that such inaction is shooting ourselves in the foot, in terms of future shortages that are predictable, but not factored into the consumer market right now?

As for the minimum wage point, I agree with you; I am shocked that economists would say such a thing. Social workers, sure... economists, no.

Posted by: Jay on December 1, 2006 3:18 PM | permalink

I think I advocate raising the minimum wage and then eliminating it. And then laughing and laughing and laughing.

'course I only had highschool economics...

Posted by: Kearns on December 1, 2006 3:46 PM | permalink

Jay:

I think it comes down to the externalities -- i.e. if we wait until petroleum is too expensive to use for powering cars, we'll have major environmental and geopolitical consequences.

At least that's my spin on it.

Posted by: Joe Grossberg on December 1, 2006 4:21 PM | permalink

Why should it be shocking? Not everyone is going to hold exactly the same mentally and believe in the exact same theories. If everyone did, it would work great when the theory was correct. When it wasn't, we'd be screwed.

At least that is how science works.

Posted by: Od*ll on December 5, 2006 1:27 AM | permalink

Well, you'd expect consensus on some issues. Hearing that 1/3 of economics like the minimum wage is like learning a similar proportion of biologists doubting evolution.

Posted by: Joe Grossberg on December 5, 2006 11:33 AM | permalink

No more comments! Either someone has violated Godwin's Law, I'm tired of the discussion or, most likely, the ten-week window has closed. You can, however, contact me through email.