Home Forums Principles of Economics Minimum wage and power imbalance Reply To: Minimum wage and power imbalance

  • Gonzalo

    May 6, 2021 at 19:20

    If I am being honest, I didn’t feel like addressing your point about altruism, maybe because I’m lazy. Probably because I don’t have a good answer. Having conceded that, I still can’t see the benefit in a minimum wage policy. As you said, it generates unnecesary unemployment and it’s not like it’s helping someone get a better salary. I think we disagree on this last part.
    From my understanding incentives trump any kind of signed piece of paper and these “forced” wage increases would only apply to people productive enough to deserve a raise. In my view this kind of law can either be harmful for unexperienced workers or totally irrelevant depending on the minimum defined.
    https://mises.org/library/middle-road-leads-socialism Maybe this can provide a different angle to which address the problem that you posed (not living in a economic utopia and wanting to improve it following austrian economics).
    If you don’t mind, I am going to reply to old threads that I find interesting haha. I joined not so long ago and I want to improve my understading and my english.