combjelly,
Let me give you a simple, hypothetical example. You have a company that provides a service, for which there is some market price. The company hires people to work to provide this service, and they work on commission. Some end up making $15/hr, some make $10/hr, some make $7.50/hr, some make $5,00/hr.
The company has to subsidize the ones who fall under $5.15, and if they don't improve, they get fired. Now raise it to $7.00, and you have destroyed the job of a number of people.
The end result is people who were gainfully employed are not gainfully employed any more, the wealth in form of service they provided is no longer created.
On top of that, these newly fired people become a liability for the state in some form, and you have increased government spending, which results in higher taxes and more job losses.
Joe |
