While simple demand-and-supply economic models predict that an increase in the minimum wage increases unemployment, this story looks at what happens to those predictions when you take into account how the increased incomes of minimum wage workers leads to increased demand for business products and services. [...]
Anti-trade and anti-globalization positions helped elect Donald Trump, and economists' traditional arguments for free trade are being ignored. In fairness to the anti-traders, the outcomes of extended trade (especially with China) have left many workers in manufacturing worse off. In teaching about the gains from trade, how do we [...]
Statistics Canada released a nice 4 minute animated video showing how GDP is calculated using the value-added approach. It begins with the definition of GDP as "The value of output less intermediate consumption plus any taxes less subsidies on products not already included in the value of output." [...]
