“It will also improve the value that taxpayers are getting from the federal government’s investment. Studies show that boosting low wages will reduce turnover and absenteeism, while also boosting morale and improving the incentives for workers, leading to higher productivity overall.”
I just love those satire articles.
If they were honest, they’d tell you what really happens.
The owner of a business can spend X number of dollars per hour per laborer. When the government does not interfere, the owner employs as many employees as he can to provide good service. Good service equals happy customers and happy customers equal more revenue.
When the government dictates you must pay X+2 dollars per hour per laborer, the business owner is forced to reduce the amount of labor he buys so that it falls within his budget. But, the amount of labor required to provide good service does not decrease with the amount of laborers, leading to greater loads on the remaining workforce. These employees become less happy and provide worse service (at the additional cost dictated by the government). Lower levels of service equal less happy customers and less happy customers give less revenue to the business.
On top of that, in the first example, more employees are making money and the business makes more money. More revenue for laborers and owners equal more taxes paid to the government. The converse is true in the second example.
Our politicians and journalists have no understanding of the labor market.