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I understand that argument, but the very high minimum wage and availability of state support means that in practice there is no market-clearing price for this l
by laingc 4y ago
I understand that argument, but the very high minimum wage and availability of state support means that in practice there is no market-clearing price for this labour. New Zealanders simply don’t want to do these jobs.
- ftyers 4y agoSo maybe those jobs shouldn't be done? It doesn't sound like a complete disaster ...
- chrisdave 4y agoOr maybe having them done by people who are willing to do them would be good.
- laingc 4y agoThat’s exactly right. There’s no market-clearing price because of regulatory distortion. You’re free to like or dislike that as a policy, but it is clear that it removes the information value of the price signal.
- rdtwo 4y agoThe is a price but regulators cap it off. It may not be a good business but a lot of things aren’t a good business if you actually have to pay market wages.
- MichaelZuo 4y agoI would bet quite a bit of money that if you start paying $100/hour, start selling fruit at luxury prices, and ban all cheaper imported fruit, the market will clear very quickly. Then again the government may lose the next election because of that.