An increase in low wages in OECD countries would change the entire economic equilibrium

An increase in low wages in OECD countries would radically change the entire economic equilibrium: Of course, it would reduce income inequality and correct the skewing of income distribution against wage earners; It would bring back inflation, given the limited potential for an increase in productivity for low-skilled jobs; It would therefore drive up interest rates, leading to a need for indebted economic agents to deleverage and a decline in asset prices and wealth; It would therefore also correct wealth inequality, but with the risk of a debt crisis; It would shift the structure of demand to the benefit of consumption and to the detriment of investment. Sharply increasing low wages would therefore be a “radical” economic policy choice.