Tim Harford argues that setting the minimum wage is essentially a technocratic decision /FT, 5 October/6 October 2019/.
In my view, not any more.
The real thing is not a trade-off between better pay and fewer jobs, but the win-win couple of higher minimum wages and a stronger economy. Higher minimum wages can strengthen aggregate demand, and this will lead to both higher budget revenues and stronger GDP growth. All will result in a more stable social environment.
By now, decisions on minimum wages are not technocratic, but political due to the appreciation of political stability.
Re “A political blunder into technocratic areas”
Governor Matolcsy, MNB, the Central Bank of Hungary
