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Notice that the "new" wages don't reflect "economic recompense for productivity"--It is based instead on keeping people in their proper social class.

No, the new wages DO indeed reflect economic recompense for productivity. When the government artificially raises the minimum wage, it drives up other wages too. Skilled workers are worth more than unskilled workers because they have SKILLS. This is axiomatic.

Skills have nothing to do with social class. If a person is a poor member of the underclass, and through education and hard work acquires skills, he will not be paid less because of his lower-class origins. If someone offered this person less than the prevailing wage (set by the market) he would (ceteris paribus) choose to work instead for an employer who offers him the prevailing wage. Employers can't afford to be discriminatory with regard to social class; they just want someone who can do the job.

That's a nice theory but I have seen a whole lot different scenario played out. I call it the Perceived Social Class Wage Expectancy Theory. (PSCWET) By my theory, employees within an organization are paid on a hierarchial basis according to their perceived class. The secretary is a lower middle class worker and paid accordingly. The forklift guy is upper lower class and will be paid less. The CEO is upper upper, and should be able to drive a Cadillac. This is true even if the line worker produces more income.

Put my theory to the test. Let a receptionist in a small firm drive a new Cadillac to work. When the managers see it, let her tell them she saved her money and has been investing. It will cause no end of distress at the company. The hierarchy has been upset. see Jung, Carl. Theory of Archetypes. parsy

Lest you think I was being facetious in my last response, I wasn't really. I have worked closely with a lot of small businessmen and "economics" is not what drives many of their decisions. As often as not they buy some new business asset to impress their friends. I think Veblen called it Conspicuous Consumption. (Yes I know the Mencken response.)

Wages are often NOT set by productivity. That is why boss's kids get higher paychecks. It is a throwback to the aristocracy. If this kid comes from me, and I am this super duper business owner, then obviously my offspring has inherited those superior genetic characteristics. There, Mini-Me, should make a higher paycheck than Bob, the veteran employee...

I do not know how old you are or how much interaction you have had with small business owners. I am 47 and been kicking around that world for a number of years. All I ask is that you keep an open mind and when you are trying to figure out how some of your clients get into the messes they get into, think of my theories. parsy.