By Saahil Parekh, 5 August 2015
Proposals for increasing minimum wages in many parts of the world are abound, and this issue is likely going to become a political issue in the upcoming US elections in 2016. The following graph from The Economist shows the relation between GDP per capita and minimum wages.
Yet America as a whole is an outlier among advanced economies. Given the pattern across the rest of the OECD, a group of mostly rich countries, one would expect America, where GDP per person is $53,000, to pay a minimum wage around $12 an hour. That would mean a raise of about 65% for Americans earning the minimum pay rate.
The Economist, in another article, on minimum wages.
Increasing minimum wages are electorally popular policies; they do not require unpleasant tax rises, and do not seem to lock the poorest out of work.
The topic…
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Utopia, you are standing in it! 
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