the state of polish popular economics

Recently I have read of a demand (one could not justify calling it a proposition) of the polish biggest trade unions that the Minimal Wage should be equal to 50% of the average wage. As my friends know I am not a great fun of the social state so I was not taken with the idea.

However, putting socialist versus capitalist debate on side, is it not obvious that the two numbers belong to different realms? The minimum wage should be set in accordance with the social minimum. Whereas average wage (in a market economy) is a reflection of how well the economy is doing. Although I am not an economist I would venture a guess that such cross linking would exert harmful pressure.

And is it in the Trade Union interest to make employers reluctant to employ more people?

3 Responses to “the state of polish popular economics”

  1. Simon says:

    I was going to launch into some argument about valuing people more, but to be honest I can’t be bothered, and my argument would just demonstrate my lack of understanding of economics!

  2. marcin says:

    to play devil’s advocate – would ‘artificially’ putting the pay levels up reflect one valuing people? Surely if one believed that people are good and productive one would be reassured they will earn good living. But if you expect most people to be able to do only lowest paid jobs then it would be showing them some form of valuation. …

  3. David says:

    (Is it necessarily “socialist versus capitalist”? Anyway … ) I am probably more “socialist” than you, but having said that I want to ask some questions about the minimum wage itself; to be more precise, one question: why?

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