Our next article (barring last minute changes) will tackle the minimum wage issue by analysing its various economic implications. Here are some excerpts:
Those arguing for its restraint or elimination will warn about the danger of loss of jobs, rising unemployment, higher inflation, and erosion of competitiveness of the national economy. Those proposing a minimum wage hike highlight the economic stimulus that would result from the surge in the spending power of low-income families, contend that it encourages people to enter the labour market (possibly getting off social services), and that it fosters equity and social justice. The truth is ...
more workers willing to work than firms willing to hire them jobs being available, hence leading to unemployment.
Asymmetric information is when the participants in a market do not all have access to the same information. If one party to a trade has better information than its counterpart they will have the upper-hand in determining the value they could reap off the exchange.
Making work pay and encouraging more people to work could push (outwards) the production possibility frontier of an economy, encouraging future economic growth.
The full article is about 63 to 68% done and will be published in the forthcoming days...or weeks...or..