If it wasn't clear, my point was that it allows employers to arbitrarily lower their wage rate where the business is viable.
Example:
-Employee needs $15/hour to 'afford life'.
-Business is only profit-positive if it pays $12/hour or less
-Assuming the employee will only accept a job if it allows them to 'afford life', as long as the government subsidizes the equivalent of $3/hour, business is able to turn a profit. Anything less than that, the employee does not accept the position and the business is not viable.
This was laughably on display a few years back when McDonald's received blowback by publishing their training that teach their employees how to apply for government assistance while they were posting outsized profits.
> my point was that it allows employers to arbitrarily lower their wage rate where the business is viable.
But it doesn't do that, in fact it requires the employers to raise their wages.
Your model has a single employer (a monopsony) who doesn't need to negotiate. That's a case where minimum wages cause both wages and employment to rise.
> This was laughably on display a few years back when McDonald's received blowback by publishing their training that teach their employees how to apply for government assistance while they were posting outsized profits.
McDonald's (mainly) doesn't have employees, it has franchisers and those have employees. Different companies.
More importantly, if you're on the left then you should think welfare is good. It's good that they're telling people that! We should require it in fact!
If you're saying that telling someone to get welfare is bad, you're making an argument that welfare is bad. In your model signing up for welfare makes employees poorer. That doesn't make sense.
>But it doesn't do that, in fact it requires the employers to raise their wages.
Is there evidence to this claim? Even the most recent UBI studies seem to run contrary to this point.
This otherwise borders on a bad-faith post. Yes, McDonalds corporation is different than a franchise, but the profits of the former are obviously tightly coupled to the operations of the latter.
And it’s not a left/right political argument on whether welfare is “bad”. That’s an overly simplistic perspective. It’s about how a particular system is structured and whether that leads to desirable outcomes for society as a whole.
Example:
-Employee needs $15/hour to 'afford life'.
-Business is only profit-positive if it pays $12/hour or less
-Assuming the employee will only accept a job if it allows them to 'afford life', as long as the government subsidizes the equivalent of $3/hour, business is able to turn a profit. Anything less than that, the employee does not accept the position and the business is not viable.
This was laughably on display a few years back when McDonald's received blowback by publishing their training that teach their employees how to apply for government assistance while they were posting outsized profits.