So where can you find this.
My home country, Nigeria.
The National Labour Congress (NLC) of Nigeria just called off a strike because the government agreed to pay them 30,000 naira as minimum wage.
As an economist I know that any price floor leads to deadweight loss and the labour market in Nigeria can actually afford to price minimum salaries below $90 a month.
But wage price floors are a necessity for survival in my country; however people are still taking a piss. Can you imagine what it means if your representative council agrees to a minimum wage that is below 50% of the cost of a minimum lifestyle, a subsistent lifestyle.
I don’t understand how they concede, then I think of the effects of the strike itself, it is a greater loss to the economy and its not like the workers are getting paid while they are on strike.
Sometimes, I know it only through God (no wonder church is the biggest business in the country) that people in Nigeria are surviving as statistics now show that Nigeria is actually one of the countries with the highest growth in the number of people living in extreme poverty.
But February 2019 is coming.
Hopefully there will be change. I have a friend who talks about the major infrastructure investments the government is making but I always keep telling him about short term and long term goals. There is a tradeoff between short term and long term and as much as you must plan for chronic issues if you don’t address the acute situation there is no reaching long term.
My economics teacher used to say that ideally the central bank is to address short term issues and that the federal government is to address long term issues but it is not all cut and dry like that.
The government also affects the short term through welfare policies and even tax policies have both short term and long term effects.
Ultimately, a stronger resolve needed to be shown to ensure that people could afford the minimum standard of living and this stand is governments job to move up in the long term.