Well, as a novice economist, I can not answer what happens to the market based on "may" without conjecture. In other words, please tell me how we get to a point that most wage earners only make $3 per hour.
$3 or $5 is not important. Relative wages are declining particularly at the middle level and below. Corporations are trying to reduce labor costs. Where I work they are farming out a greater portion of the spreadsheet work (which requires a much higher skill set than the average worker) to offshore because labor costs are 1/3 of what they are here. Many of the trade workers pay is down as well. I deal with groups of physicians and they complain their compensation is down. With the reduced income workers (or former workers) won’t have the income to purchase the products for companies like Carrier. It is a vicious cycle where each company in turn cuts wages which reduces the available market for not only their own products but other products.
Not sure where the end is but having an increasing portion of the workforce not working creates social stresses.
Henry Ford increased pay for his workers partially because he recognized that he needed a market for his cars.
$3 or $5 is not important. Relative wages are declining particularly at the middle level and below. Corporations are trying to reduce labor costs. Where I work they are farming out a greater portion of the spreadsheet work (which requires a much higher skill set than the average worker) to offshore because labor costs are 1/3 of what they are here. Many of the trade workers pay is down as well. I deal with groups of physicians and they complain their compensation is down. With the reduced income workers (or former workers) won’t have the income to purchase the products for companies like Carrier. It is a vicious cycle where each company in turn cuts wages which reduces the available market for not only their own products but other products.
Not sure where the end is but having an increasing portion of the workforce not working creates social stresses.
Henry Ford increased pay for his workers partially because he recognized that he needed a market for his cars.