> Or did I miss something in my Macroeconomics 101 class?
Productivity increases will theoretically cover the cost...
“Productivity increases will theoretically cover the cost...”
True, but wouldn’t that be offset by the layoffs due to the higher wages and higher costs?
How do you mandate a productivity increase?
"Joe, we are giving you a ten percent raise and we demand that you increase your productivity by twenty percent!" (Joe happens to be a retail clerk; so that should prove interesting)
Besides; if the employees also become unionized, the unions will force productivity lower. They always do. It's their thing, ya know?