“Oh, you economists! You think that the only thing people care about is money. How ridiculous!” — such runs a typical accusation by people who know nothing about economics.
Economists, as a matter of fact, are especially aware that people care about much more than money. That’s why, for example, economists understand that even low-skilled workers who find or retain jobs in the wake of a hike in the legislated minimum wage might nevertheless be worse off than if the minimum-wage had not been raised.
My latest column in the Pittsburgh Tribune-Review explains.