[evanpw]

It seems really strange to argue that wages are too low because business owners aren't greedy enough (to raise wages to profit-maximizing levels).

It actually appears more likely that employers have on average already set wages slightly above the market-clearing level in order to improve productivity and maximize profits. This is the theory of "efficiency wages" [1], which tries to explain why unemployment persists when companies could cut wages and employ more people.

There is no free lunch.

[1] http://marginalrevolution.com/marginalrevolution/2015/04/the...