One-Size-Fits-All Economist Challenged

Nobel Prize-winning economist Paul Krugman
[From article]
Let's look at some of the history of some of Krugman's non-tradable industries. During the 1940s and '50s, there were very few self-serve gasoline stations. There were also theater ushers to show patrons to their seats. In 1900, 41 percent of the U.S. labor force was employed in agriculture. Now most gas stations are self-serve. Theater ushers disappeared. And only 2 percent of today's labor force works in agricultural jobs. There are many other examples of buyers of labor services seeking and ultimately finding substitutes when labor prices rise. It's economic malpractice for economists to suggest that they don't.

http://townhall.com/columnists/walterewilliams/2014/10/22/embarrassing-economists-n1907505

Embarrassing Economists
Walter E. Williams

Oct 22, 2014