The minimum wage was set by the government

The minimum wage was set by the government, which deviates from the equilibrium price of full employment. The market is only willing to accept that workers with lower wages. The situation has been excluded from the job market. The extent of unemployment is closely linked to the extent to which companies can have the awareness about self-consciousness and self-regulation. If companies are free to adjust their wages, the impact on the economic crisis will be sufficient neutralize. There is no doubt that, the minimum wage is intended to protect low-wage earners. Well-paid people do not need the policy of the minimum wage. However, when evaluating a well-meaning policy, the government should consider about the response of the affected person. The result of a well-intentioned policy is likely to be devastating. As China’s employment situation, there are more than 20 million migrant workers losing their jobs in the economic crisis (Trading Economics, 2002-2008).