VitalAccurateThinking

"Afford to Pay More"

This is more economic muddle-headedness from Loren Steffy. One statement stands out in particular:

Meanwhile, corporate profits now make up a larger part of the economy — and wages a smaller part — than they have in 40 years. If ever there were a time when companies could afford to pay more, it's now.

So, in Steffy's world, wages are set at what the employer can afford and not what skills and value the employee can bring to the market? That is not how the real world works. You can command higher wages when bringing skills and productivity to the table. If it takes no special skills or training, then your wages will be commensurately low as a result. The opposite is almost universally true.

That is economic madness. It is just like saying that if the minimum wage is raised, that will increase demand for such labor. Nonsense - mandating wages will only result in a decreased demand for that product. Just ask grocery store patrons in France who have to bag their own groceries as a result of high wage mandates.

posted by Jim VAT @ 9:45 AM