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this post was submitted on 18 Aug 2023
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That is a weird takeaway from this.
Government: We believe that you need to pay your workers more because we feel like it's not enough.
Companies: The workers agreed to the pay when they signed on. If you make us pay them more, we cannot afford to pay the workers without raising our rates to levels that people don't want to pay for.
Government: You will pay them more money.
Companies: We can't afford to do that so we will be pulling out of this area and now they will make exactly $0 and now people have fewer transportation options.
Government: We did it, we successfully raised people's earnings to $0! pats self on back for a job well done
How is this any different than a fast food chain illegally paying someone under minimum wage? Then getting shut down for not acting legally?
If you can follow the laws, you don’t exist.
Everyone else has to play by the labor laws rules. If you can’t afford it, go out of business.
The problem with your scenario is that you're assuming an increase in payroll expenses will have enough of an affect on the company's profit margin for them to go negative.
This is almost never the case, and if your business can't survive without paying slave wages, then your business doesn't deserve to survive.
The truth is that companies don't want to raise wages because they're on a quest to hoard as much wealth as possible. Just look. The country is in a recession and corpos are reporting record profits.
Stupid take, incredibly dumb.
Found the conservative!