"One of Brad DeLong’s commentators compares what’s going on to the discovery that some eminent biologists are creationists, but it’s actually worse than that: it’s like discovering that some eminent biologists have never heard of the theory of evolution and the concept of natural selection." -- Paul KrugmanI am in agreement with, for instance, Krugman and DeLong that the U.S.A. government currently needs to spend a lot on a stimulus package. But I wondered if such more-or-less liberal economists acknowledge other controversies in economics. Have they heard factor prices (like wages) cannot necessarily be explained by the interaction of well-behaved supply and demand curves in factor markets, even under ideal assumptions of perfect competition, flexible prices, perfect information, etc? I don't know whether I want to put much emphasis on Brad DeLong's failure to note such in this post about immigration.
6 months ago