There is a lot of debate over the minimum wage. An internet search of the topic will return with almost unanimous condemnation of it. It is blamed for unreasonably pushing wages too high and causing unemployment. It is decried as a major cause of economic problems rather than the solution. However, these arguments are based upon over simplified ideas and graphs. Now, most of them look nice and are easy to understand, but they should be judged on how well they describe the real world. The simple fact is they don’t really. The main argument is that if a workers marginal productivity is 5 euro, they cannot be paid 6 euro. Now this presumes that the boss knows what the … Continue reading “The Advantage Of The Minimum Wage”