The new agenda for democrats is to “change the subject” of inflation they caused. They’re bringing back the discussion of raising the minimum wage. Academically, raising the minimum wage puts mom and pop stores out of business for this reason: While super huge corporations simply weren’t paying a living wage, mom and pop stores literally could not pay more. The old agenda, the one you saw through the plandemic was to put out competition against corporations in order to have less competition which results in mergers and monopolies. So the new agenda of talking about raising the minimum wage also is destroying competition in the workplace.
NOW HERE IS WHERE IT GETS GOOD: There’s a way to write a law to make sure Mom & Pop small shops stay around. It’s called scalable wages and it works like this: Minimum wage remains 7.25$, but for every extra employee you have, the minimum wage for your business rises by a $0.01 capping at 13$ or 15$. So mom and pop employing one jr high school student pays only 7.25$. But Amazon or Starbucks ends up capping out the 13 or 15$ because they have thousands of employees.
Scalable wages has been tried in France and worked to some degree. They used tiers of 10/50/etc employees to make accounting easier… But this resulted in employeers staying at 9 or 49 employees. The tiers became roadblocks. We have computers to do the variable pay now to avoid the pitfalls France had with pay tiers(Hit 50 employees and you have to pay significantly more, so many companies hover at 49 employees). This is why each extra employee is 1 cent more.
Yes, there would be subtle incentive for companies to start playing shell games of breaking up companies, but it could be cracked down with fines and jail time… The result of the corrupt trying to game this system would be the break ups of companies moving away from monopolies and more competition. Have other people studied this to chime in? I like to talk about this because it is truly a solution that saves the small guys, it puts the breaks on big guys exploiting labor pay, and it slows mergers and monopolies. As you hear the shouts and cheers of people around the nation who know nothing about the economy just want free money, I wonder if anyone likes discussing rule systems of proper governance, or if I’m alone in my studies.
We should all know by now politics is corrupted by legalized bribery(lobbyists) and they ain’t going to do what is in our favor, especially in times like these. Still, I like to talk academics. Fractional tiered wage structure related to your employee number has been tried and works to some degree, but since the tiers are too heavy handed at X employees 10/50/200/etc, those end up being roadblocks which restrict hiring. Incrementally raising pay per employee avoids this roadblock, makes employees enjoy growing the company to benefit, and new hires are welcomed a bit more(this guy is making me make more money) so psychologically it’s warming for love and of course it protects MOM & POP stores and slows mergers/monopolies bad for everyone. Love ya my fellow humanity bros and soul sistas, understand this is a major field of my study, and may you enjoy and welcome information.