When a private company voluntarily pays its staff a higher wage, it’s perfectly acceptable and should be applauded. However, when the government mandates businesses to pay employees an arbitrary number then that’s where the labor market and the private sector start to suffer.
As economist Murray N. Rothbard wrote, “In truth, there is only one way to regard a minimum-wage law: it is compulsory unemployment, period.”
The founder of Gravity Payments, a credit card payment company located in Seattle, Washington, has decided to give everyone a substantial pay raise by increasing the minimum wage to $70,000 per year, according to the New York Times.
Everyone will be given this wage, from customer service representatives to senior clerks; the average staff member currently earns $48,000 per year. This means that the paychecks of 70 workers will grow, while 30 will see their salaries double.
Dan Price informed his 120-person staff of the change Monday, and noted that it will take about three years to fully implement. Moreover, Price will fund this concept by reducing his salary from roughly $1 million to $70,000 and using the company’s $2.2 million profits.
Price decided to make this salary change after reading an article on happiness, which essentially said that anyone earning less than $70,000 can experience big differences in their lives with more money.
“Is anyone else freaking out right now?” Price asked after making the announcement. “I’m kind of freaking out.”
In recent months, many businesses have announced that they’re raising their own minimum wages. McDonald’s, Target and Wal-Mart are just some of the companies increasing wages for entry-level workers and store managers over the course of the next year. These efforts are meant to combat a growing labor market and cave into demands from many anti-poverty organizations and unions.
Now the unions will demand that everybody “deserves” $70,000 a year whether they work or not. Businesses are caged animals meant to serve the masses! The mark of selfish people were people who “thought life owed them a living” lol.. The selfish jerks are now the good guys? Or is this just a well-played coup de tat to have the MegaCorps kill off the mom& pops who can’t afford ridiculous minimum wages?? Like 1984 there will only be the State brought to you by Walmart & Mcdonalds.. Using the minimum wage to push out the midde-class of entrepreneurs & small business just might be at work here since a Multinational can pay high enough to drive mom&pops off the cliff. The government becomes all. Fascism is now called “public/private partnerships” & it looks pretty & smells good at first: ELYSIUM is here?