A few years ago, I would have thought I’d gone insane to say this but…I think governments should work towards abolishing minimum wage laws and reducing the power of unions.
However, I think a supportive infrastructure needs to be in place beforehand. This would include robust transfer payment policies for the unemployed and other vulnerable groups. As well, a public provision of health care and education that private entities are free to compete against. Unions should be limited in their ability to oppose firms that aim to cut costs by reducing or replacing their workforce but should be supported by laws when negotiating wage rates and working conditions. I think this direction draws on some strengths of the free market and on the goal of equitable distribution of income. Flexicurity comes to mind.