CultureCitizen
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- Jun 1, 2013
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Workers push for minimum wage to be raised (ethical or unethical)?
What would happen if the government and employers cooperate to boost the minimum wage to say, a very high figure. What would happen to the economy in the short and long run
It is complicated: some businesses would have to raise the prices of their products / services. On the other hand, more money would mean more purchasing power and more expenses.
Other alternatives are to establish a minimum income ( a negative income tax) that is an idea which was supported by both Hayek and Friedman.