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> My view on this narrow slice of policy is that it's better that private employers bear the full cost of supporting an employee at a reasonable standard of liv
by bhupy 8y ago
> My view on this narrow slice of policy is that it's better that private employers bear the full cost of supporting an employee at a reasonable standard of living
But employers just pass that cost onto the consumer. This results in, in effect, a regressive tax, because these higher prices are paid by the rich and the poor alike.
In contrast, using welfare to ensure that these workers don't go hungry ensures that the workers essentially end up with the same amount of money as they would have with the wage floor, but having the rich pay for it disproportionately (via progressive income/capital gains taxes).