Yes, but better wages don't necessarily equate to higher prices. During the domestic auto bankruptcies it was a bit grating to hear people ramble on about the

Yes, but better wages don't necessarily equate to higher prices. During the domestic auto bankruptcies it was a bit grating to hear people ramble on about the "high" wages of union workers being at-fault for the domestic's inability to compete. Considering domestic vehicles are already generally less expensive than imports, just how much more less expensive do they need to be to get people to buy them? If union labor represents $1,000 of every Malibu sold, and union wages were cut in half across the board, and that savings was passed onto the consumer with a $500 lower MSRP, would that move significantly more vehicles? I'd like to think common sense would say "of course not". The price is already (generally) very competitive. It's like basic reasoning skills go out the window in these discussions. To make the argument higher blue-collar wages are a problem, first you (you'd think obviously) need to quantify the impact of those wages. Is it 2% of the cost? 5%? 10%? 20%? Would killing the retirement benefit, and cutting the base salary in half drop that ~$60 total compensation package to $35? If labor compensation is 10% of the cost of a $30,000 vehicle, you can now theoretically (if the savings aren't simply reinvested elsewhere, or disappear in management bonuses) drop the price of the car to $28,750. All of those "savings passed onto the consumer" assumptions seem real unlikely to me. But even then, is that $1,250 savings going to move more product? Probably not. While there are always exceptions, most people who aren't already considering a domestic vehicle aren't making their decision on price alone. Price isn't even the primary concern for someone who purchases a Camry over a Malibu (obviously; and there's nothing wrong with that). So yeah... I don't think increased wages for the average worker have a whole heck of a lot to do with higher unemployment. And there are a lot of business advantages to being an employer who takes care of their people IME. Especially when applied to software development (you'd think here of all places that would be glaringly obvious). I think your comment is needlessly snarky. You could as easily suggest that "Anyone who understands basic economics knows that higher wages increase purchasing power" (in the short-term at least). Furthermore that the people in the lowest pay brackets are the ones most likely to spend it in ways that benefit the overall economy. Which is why (as distasteful as feels sometimes) extending unemployment insurance is one of the most economically beneficial and stimulating things you can do in times of recession. Those dollars are going to get spent, and they'll get spent where they'll be most effective at creating new jobs.