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Regarding the 10 craziest things Bachmann said, the jury is definitely still out regarding the effect of minimal wage on unemployment. There have been mixed reports in the economics literature: no linkage is found in one study, but it is found in other studies, say. Krugman (and the economists he cites) is not the last word on the subject.

In brief, this statement of Bachmann's might be wrong, but it is definitely not nutty. Not even close. Econ 101 does predict that minimal wage leads to higher unemployment, and the question is does this in fact happen, and if not, why not. See the Wikipedia article, and the references cited.

By william e emba (not verified) on 30 Jun 2011 #permalink

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