Biden says fair wages generate worker loyalty, leading to higher productivity and less turnover. He says it boosts the economy by generating $19 billion in additional income for the neediest people.
Oh. Well, if that’s true why does the government have to force businesses to do it. If it’s really good for business wouldn’t they be doing it voluntarily? What they do is raise worker pay to match worker productivity. When the government tries to force a pay increase to workers whose productivity doesn’t match the pay increase businesses are forced to get rid of those employees in order to stay in business. The proposed increase in minimum wage to $10.10 will result in marginal workers, the most vulnerable of all workers, to lose their job. That means they also lose the opportunity to gain employment skills which would improve their chances of finding more lucrative employment later on.