I broke this down in Growls Of A Wolf. Government mandates higher wages→private business pays more→employee is taxed more→government wins.
That’s the reason Abyss Press has no employees. I can’t afford it! And if I could, I would lay off employees, and add to the others’ job descriptions. Get my money’s worth and maintain my overhead. That’s people added to the Unemployment rolls.
Look at it this way, you have three groundskeepers. They make minimum wage. It’s all you can afford to pay them. Government makes a law forcing you to pay more.
You can’t afford to keep all three, what do you do?
- Proposed Minimum Wage Hike in AR Facing Opposition (arkansasmatters.com)