Greg Mankiw on minimum wages

Posted on Monday 26 February 2007

Greg Mankiw comments succinctly on what I see as the hypocrisy of most people who propose imposing minim wage restrictions on countries as a requirement of free trade (how free trade and restrictions go together is beyond me).

Robert Reich says that, as a requirement for free trade deals, we should tell developing countries to “set a minimum wage that’s half their median wage.” The proposal raises two questions in my mind:

1. Does Reich pay his nanny, cleaning person, and gardener more than half the median wage of members of his family?

2. If not, should I refuse to buy his books?

Made specially timely by the fact that I’ve just read The Choice, a terse description of free trade versus protectionism.

Here’s his post, found via Marginal Revolution.


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