Government officials throwing self serving smoke screens.
Everything here is true except for the last sentence.
As long as CEO’s, the rich and the corporations don’t understand this simple economic principle no amount of legislation will achieve much, except for further de-balancing the economy.
In fact minimum wage encourages employers to pay as low as possible instead of letting them pay so low as to see their working force disappearing in the dark.
The fact is that by setting this minimum wage the government suggests to the employers that: ‘it’s OK for you to try to pay as low as possible but you cannot over do it and we’ll tell you where to stop.’ That’s why the employers no longer compete among themselves to get the best available workforce – which, if well managed, produces excellent long term results. The competition on the labor market has been ‘degraded’ to ‘who is able to have the lowest labor costs’ only this policy sometimes generates good enough results on the short term but never fails to lead to disastrous results on longer term. The work force is demoralized, no longer cares to improve its qualifications and aggregate consumption goes down for lack of solvable demand.
This concentration on costs instead on overall efficiency is malignant. Offering employees a living wage and decent working conditions vastly improves efficiency and, ultimately, bottom line results. Henry Ford had understood that more than 100 years ago. How come we have already forgotten?