The anti-minimum wage argument, hardly ignores dynamic effects, it relies on them. If there where no dynamic effects (beyond the initial forced increase) then minimum wages, and increases in such minimums might actually be a good idea. (At least it might be if you care about the income of low end workers more than you care about liberty. Such issues are never purely economic, values and political philosophy are always relevant. Even if we had perfect knowledge of the economic results (which we never will), that wouldn't result in universal agreement on such issues, since they are not purely about the economic results.)
Since there are human brains running around making their own decisions you have to consider the incentives you create, not just the desire of the plan your pushing, and the mechanisms used to try to force people to act on your desire. Also mathematical simulations and models are more limited because of this autonomy. Of course since the agents are autonomous, and not all the same, and there are so many of them, and they can change over time, and there are always variables beyond the one your considering, any prediction, not just one based on mathematical models, is very likely to be imprecise, and could be completely wrong no matter what method is used to arrive at it, or how solid the logical argument, or mathematical model, or historical observation, or common sense point seems to be. |
