The purpose of having a minimum wage is that every employer has to pay it, so that as far as business competition goes, things even out through the economy. If every business was paying their workers the same higher wage, they would all raise prices by a similar amount, so none of them would suffer a competitive disadvantage as a result. Additionally, their employees would then enjoy greater purchasing power and would be able to contribute more demand to the economy.
This is the same principle behind Henry Ford paying his assembly line workers a high enough wage to be able to afford one of his Model T's.
In a consumer-driven economy, it's important that the population has enough purchasing power to actually consume.
This is the same principle behind Henry Ford paying his assembly line workers a high enough wage to be able to afford one of his Model T's.
In a consumer-driven economy, it's important that the population has enough purchasing power to actually consume.
[size=8pt]"For I reckon that the sufferings of this present time are not worthy to be compared with the glory which shall be revealed in us.”[/size] [size=7pt] - Romans 8:18[/size]