Wage and Price Stickiness and Economic Recovery
In a weak economy, the government should not erect barriers to hiring. But two government policies have hindered the already slow recovery: increases in the minimum wage and government unionization. Eliminating these policies would not be enough to spur a robust recovery—the cause of our current economic weakness goes far beyond these measures—but removing them would help. In a truly free market, each individual pursuing his or her own interest has the freedom to choose where to work. Likewise, each employer has the freedom to decide whom to hire. Overall, … More
