It is telling that the public almost unquestioningly believes that the minimum wage helps low-income people in particular. But as the prominent Czech economist Robert Holman writes in his textbook on microeconomics, “If economists agree on anything, it is that legislating a minimum wage increases unemployment.”
49% of Lithuanian citizens see labor legislation as the means of achieving balance between employee-employer interests while 33% claim that it is an employee and 7% that it is an employer who should be defended by labor laws, LFMI’s survey shows.
Under the pressure of unionists, local or state governments gave up fast – after all, they are not private owners, who protect their firms against the threat of bankrupcy, but elective clerks financed by taxes!
And still, at the same time, and in addition to these statements, the same government, and its majority in parliament, is approving measures, which are likely to increase unemployment and destroy the process of creating new jobs.
In the majority of cases, they are extremely anti-development and fulfilling these demands will only lead to the increase in the unemployment rate.
The negotiating power of a single worker is in principle smaller than the one of a big company which employs him or her.
