Episode Synopsis "6. Government Licensing of Industry and Minimum Wage"

The peanut butter crunch was in 1980. Crop acreage and production was cut down by 45% by government price support, import quotas, and cartelizing of the industry. The price of peanuts more than tripled. Farm price supports also keep cheese prices above market levels. The minimum wage law imposes a wage above the laborer's discounted marginal value product. The supply of labor exceeds the demand, and the unsold surplus of labor services means involuntary mass unemployment. Low paid workers are screwed by minimum wage laws.Part 6 of 14. Presented in 1986 at New York Polytechnic University.

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More episodes of the podcast Introduction to Microeconomics

• 1. Intro to Micro: Demand and Supply
• 2. Value
• 3. The Determination of Prices
• 4. Price Controls in the Oil Industry
• 5. Minimum Price Controls
• 6. Government Licensing of Industry and Minimum Wage
• 7. Mid-Term Review and The Theory of the Firm
• 8. The Firm
• 9. Monopoly and Competition
• 10. Government Cartels
• 11. The Structure of Production
• 12. Labor and Unions
• 13. The Labor Market
• 14. Interest Rates and Course Review