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Forum Post: The Irrelevance of Worker Need and Employer Greed in Determining Wages

Posted 2 years ago on Feb. 27, 2012, 9:33 a.m. EST by darrenlobo (204)
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"...average money wage rates are determined neither by worker need nor by employer greed, but, basically, by the quantity of money in the economic system and thus the aggregate monetary demand for labor, on the one side, and by the number of workers willing and able to work, on the other — that is, by the ratio of the demand for labor to the supply of labor. It should also be clear that in a free labor market, money wage rates can fall no lower than corresponds to the point of full employment."

http://mises.org/daily/5934/The-Irrelevance-of-Worker-Need-and-Employer-Greed-in-Determining-Wages

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