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Both of which would give them strong incentive to lower the salaries first: this way they can afford to hire more workers, or pay overtime at the same total sal

• Ericson2314 5y ago
  It's a labor market. If you gotta higher more people, that doesn't help your negotiating position. You are right that the labor market is not a econ 101 efficient, historically, and this minimum wage laws didn't have all those econ 101 effects people thought. But let's not carry that premise to the far: shrinking the work-week and tightening the labor market makes it more normal. So yes business hates this at first, as distributing the work more evenly costs them more money, and lots of unproductive small bossiness will be stuck. But this is good. Eventually, paying more people will create more demand, so the bigger productive businesses, now with less small business competition, might actually like this situation. Perhaps. This whole "we are going to dock pay" scenario would basically require cartel action, which doesn't exist for small businesses. (They don't have cartel power, they have political power to e.g. ensure lots of undocumented immigrants and what-not.) People will quit and find other jobs. The bigger corps will provide some of the other jobs. That said, I do think coupling with UBI to smooth over the transition with more demand to ensure the small business don't even try some funny business would be good.