Josh Barro, politics editor at Business Insider and an employee of Blodget’s, recently wrote a blog post detailing why he thinks his employer is wrong on this critical issue. He tells Blodget and Lauren Lyster that “shaming people into paying more is not an effective strategy” to boost wages.
“There is not an obligation that exists specifically between employers and employees," he says. "No individual company is better off by paying their workers more.”
Barro gives the example of what would happen to the McDonald's Big Mac if the company decided to double its employees' wages to $15 an hour: a price hike of $1.50 per Big Mac. He believes the onus is on the federal government to change the current employment situation.
“We need public policies aimed at increasing wages,” he explains. “We need a monetary policy that is aimed at creating full employment. I want the government to be involved so that we don’t have to depend on the private sector to do anything other than create profits for shareholders.”
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