Mr. Freenow wants to work at a restaurant that pays him $10 an hour. This amount is what the government of his country sets as a minimum wage. However, it is way more than equilibrium wage, $5 an hour. So, Mr. Freenow has to compete with many other people who also want to apply for this job that pays them more than equilibrium wage. This results in a great competition, and unfortunately, Mr.Freeman is rejected. There are bunch of rejected people since the restaurant only chooses one person. The high minimum wage causes greater aggregate supply of workers including Mr.Freenow than aggregate demand by the restaurant and results in surplus of labor. Therefore, Mr. Freenow is still free of work. He is complaining that the government should abolish or at least reduce the minimum wage that attracts too many competitors. Right now, he is too frustrated to consider low-income workers who may be greatly damaged if the minimum wage is decreased.
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