Wow the tax cuts are so powerful that Starbucks went back in time and gave employees raises in July of 2016: http://money.cnn.com/2016/07/11/news/companies/sta

Wow the tax cuts are so powerful that Starbucks went back in time and gave employees raises in July of 2016: http://money.cnn.com/2016/07/11/news/companies/starbucks-barista-raises/index.html http://money.cnn.com/2016/07/11/news/companies/starbucks-bar... Economic theory doesn't even suggest that companies would raise wages just because they have more after-tax profit. It predicts that they would invest so much that capital would bid up the price of labor by competing for workers in the marketplace. This obviously isn't what's happening here. John Cochrane covers this: https://johnhcochrane.blogspot.com/2018/01/right-answer-wrong-reason.html https://johnhcochrane.blogspot.com/2018/01/right-answer-wron... Starbucks was just going to rise wages anyway, because the labor market has been tight (since before the tax cuts), and it saw an opportunity to simultaneously ingratiate itself to progressives and to the trump administration.