It seems really strange to argue that wages are too low because business owners aren't greedy enough (to raise wages to profit-maximizing levels). It actually

It seems really strange to argue that wages are too low because business owners aren't greedy enough (to raise wages to profit-maximizing levels). It actually appears more likely that employers have on average already set wages slightly above the market-clearing level in order to improve productivity and maximize profits. This is the theory of "efficiency wages" [1], which tries to explain why unemployment persists when companies could cut wages and employ more people. There is no free lunch. [1] http://marginalrevolution.com/marginalrevolution/2015/04/the-false-prophets-of-efficiency-wages.html http://marginalrevolution.com/marginalrevolution/2015/04/the...