Economics is an inexact science in spite of propaganda which would suggest it has perfect crystal ball predicitive qualities. James Galbraith seems to have pointed out that fact when speaking to the Economic Society of Australia at the University of Melbourne this week. Galbraith claims that countries with lower minimum wages and higher levels of income inequality tend to have higher unemployment rates, as low-skilled workers chase a diminished pool of well-paying jobs. Read more here. This is contrary to the neo-classicism views of conservative politicians and economists and the business people who support them. Their idea is to keep shrinking unemployment keep on lowering wages.
Funny thing is the neoclassicists don't seem to get the idea that is quite visible across millennia that one could get to slavery and still not clear the labour market of unemployment.
