Author: Thomas Paterson, ANU
By voting President Maurico Macri out of office, Argentinians have signaled that they will no longer tolerate continued economic crisis, much less policies that appear to make matters worse. But, because solutions to Argentina’s problems are not mutually compatible, the new government will likely face similar challenges.
Leandro Mora Alfonsín is a professor at the University of Buenos Aires, the University of Business and Social Sciences, and the National University of General Sarmiento.
Higher nominal wages for low-paid workers can boost real earnings, increase consumer spending, and help make housing more affordable. And insofar as raising the minimum would increase companies’ wage bill, it would create a stronger incentive to replace labor with capital, which could lay the foundation for renewed productivity growth.
Jim O’Neill, a former chairman of Goldman Sachs Asset Management and a former UK Treasury Minister, is Chair of Chatham House.