Economics is like playing with a toy- you push one thing down, another pops up, no?

Question

Give me math, science, foreign language, music- OK, I can get into that. Give me history and economics and I'm lost at SEA.
So I'm looking at this great LAND, and the debate over the minimum wage (http://news.yahoo.com/s/ap/20070130/ap_on_go_co/minimum_wage),
and all I can think is,
you press this lever, and things shift like this. You press this button, and POP! there goes the seam that was holding everything together over there.
I know it's a grotesquely simple concept, but am I seeing the forest from way outside of the trees, or what?

Answer 1

That is not grotesquely simple. If more people understood even what you understand, we would all be better off.

In economics, a particular action will always have a "hidden" trade-off associated with it (not hidden for those who care to look). Sometimes the trade-off is good, sometimes it is bad.

When outside forces (politicians, government) initiate a specific economic policy, the trade-off is almost always bad.

Energy price controls of the 1970's is a good example. Cheap gas sounds wonderful until there are shortages and you a sitting in line for 2-3 hours waiting to pump gas.

The "green laws" and "open space laws" (huge restrictions on what and where you can build) in San Francisco are another example. It is meant to promote a healthy clean wonderful environment. And if you are a gazillionairre, you can afford to pay $1 million for a tiny house, that should cost a fraction of that.
.

Answer 2

yes, economy is an interconnected system, and messing with it has consequences, both expected and unexpected.