Government Controls

This is a great observation! You have raised a very interesting point on the minimum wage. This turns out to be a very debatable issue. For example, someone may argue that more people may tend to take “under the market” jobs in a recession especially due to the minimum wage requirement. When the economy is bad, more people just badly need a job and more willing to take inform jobs with less pay. This would mean the GDP number would turn out to be even lower than actually is in a recession and make the recession look even worse. This can negatively affect people’s expectations. So, do you think minimum wage is always protective as it seems to be? Should the government allow it be adjusted downward as well as upward?

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