Most of the past history of raising minimum wage/payroll taxes/employee benefits has been immediate outcry by business groups over how all business is going to go bankrupt/the sky is falling followed by change that a year later has business chugging along mostly the same as it was prior to their catastrophizing. It’s not really surprising that employees who are able to spend more, spend more.
Do you really think that wages are low because higher wages would make the businesses fail? Wages are low because businesses have no incentive to raise them in an employer’s market, that’s it. They make higher margins and keep the difference.
Both cases are possible. Wages may be low because of surplus of working force on the market (hence no incentives to rise wages) or can be result of extremely low margins at the given industry.
There can be tens of reasons why wages are poor, and rising minimum pay solves the issue only in some cases
Of course, there will be edge cases of industries that have not improved their margins over the years. But the fact that prices follow inflation, and wages do not, is enough information to generalise that businesses are just greedy as fuck.
Or turn you unemployed if employment at new wage isn’t feasible.
Most of the past history of raising minimum wage/payroll taxes/employee benefits has been immediate outcry by business groups over how all business is going to go bankrupt/the sky is falling followed by change that a year later has business chugging along mostly the same as it was prior to their catastrophizing. It’s not really surprising that employees who are able to spend more, spend more.
Do you really think that wages are low because higher wages would make the businesses fail? Wages are low because businesses have no incentive to raise them in an employer’s market, that’s it. They make higher margins and keep the difference.
Both cases are possible. Wages may be low because of surplus of working force on the market (hence no incentives to rise wages) or can be result of extremely low margins at the given industry.
There can be tens of reasons why wages are poor, and rising minimum pay solves the issue only in some cases
Of course, there will be edge cases of industries that have not improved their margins over the years. But the fact that prices follow inflation, and wages do not, is enough information to generalise that businesses are just greedy as fuck.
Yes. This wont work without taxing rich properly