The Banana Stand Fallacy

Let it be known to all of those who bear witness to this page that I am the progenitor of this logical fallacy in economics. If memories fade to past and those who wonder where did this exist if it decides to become popular: I am.

So anyway.

Banana Stand Fallacy – The logical fallacy in economics that business owners (no matter if small or corporation) is always flush with a lot of money, making any arguments about why they ought not to raise the minimum wage null and void. For after all…

theres-always-money-in-the-banana-stand

Peruse some tales of unintended consequences of minimum wage laws:

http://www.ijreview.com/2015/05/310771-san-francisco-business-owner-threatened-minimum-wage-law-asks-important-question-possible/?utm_source=facebook&utm_medium=organic&utm_content=PRM3&utm_campaign=PRM3

http://thefederalist.com/2014/11/13/low-income-workers-raising-the-minimum-wage-ruined-our-lives/

http://www.bloomberg.com/news/articles/2015-08-16/-19-an-hour-waiters-risk-stunting-growth-in-reform-shy-australia

http://thefederalist.com/tag/minimum-wage/ – Further compendium of minimum wage articles by the Federalist

https://reason.com/tags/minimum-wage – And of course Reason Magazine

Now some people may grouse and say, “Well if businesses don’t want to give people a living wage, then they shouldn’t have gone into business in the first place.” Of course that always assumes that people starting a business are ALWAYS in a position of power, and are immune to a number of variables that may come up from their business decisions.

But hey, that doesn’t matter. Because as always…

theres-always-money-in-the-banana-stand

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