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So wages will be driven towards subsistence.
For many, the pressure on wages will be down.
Average hourly wages will be reduced to $11.73 from $12.87.
Allowing workers to bargain for higher wages will be meaningless if the workers themselves are inferior.
The mandated wages will be $10 an hour with benefits, or $11.50 without.
He said the back wages will be paid by March and never be a problem afterward.
Ideally, most of the lost wages will be made up by subsidies from the government.
Some wonder whether wages will be better or worse with a third of the population gone.
Gary Burtless and Henry Aaron predict that the law's impact on cash wages will be relatively modest.
But rising unemployment and spare capacity suggest that workers who want higher wages will be hard pressed to win them.
It appears to have gotten that, and the expectation is that other private sector wages will be reduced as well.
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CEO of Professional Science Editing for Scientists @ prosciediting.com