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>The only relationship minimum wage laws have with productivity is that if you raise minimum wage much faster than productivity, your economy is gonna have a re
by callmeal 5y ago
>The only relationship minimum wage laws have with productivity is that if you raise minimum wage much faster than productivity, your economy is gonna have a really bad time. The reverse is not a problem.
Except for the folks, who you know, are responsible for that productivity!
- eru 5y agoCompetition is what's supposed to drive up wages until they equal marginal productivity. If you don't have enough labour market competition for that, you should look into easing barriers to entry. So you can: invite foreign companies to set up shop, encourage existing companies to branch out (eg allow WalMart to offer bank services like they wanted to; allow banks to sell coffee, like they wanted to), encourage start-ups. Perhaps try to move taxation away from labour and capital, and towards land.