Corbyn’s maximum wage idea? My unlikely defence

The talk of the day has been Jeremy Corbyn’s proposal for the introduction of a maximum wage. Much has already been said about it, so I’ll only give my quick, knee-jerk verdict, in favour of Corbyn’s proposal. When facing a choice between redistribution and the maximum wage, the latter might be a better solution. The intuition is simple: redistribution converts potential investment into consumption, whereas the maximum wage leaves it in the hand of businesses how the money is spent, meaning that more money is invested (rather than consumed), making everyone better off. Read more of this post

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