During her address at the State of the Union 2020, President Ursula von den Leyen has put forth that the Commission will go to great lengths in order to support Member States in setting up a framework for minimum wages, probably through collective bargaining.

Now, the sad truth is that we do not know for sure whether minimum wages are a “good” thing in and of themselves. They might indeed secure jobs and create fairness both for workers and companies, yet neoclassical economics predicts that they increase unemployment and the empirical evidences, your typical litmus for economic policies, are contradictory.

What do you think? Let me know.