Unless you can show me how M4A increases the demand for labor, then it's not going to increase wages.
Businesses cutting costs doesn't increase wages. demand for labor does increase wages.
#12 | POSTED BY EBERLY
True... you are claim that you understand economics, but then you seem to be stopping short for some reason. Wages (or at least, ones above the minimum wage) are at an equilibrium. The relationship between supply, demand, and price (wage). That is a basic tenant of economics. And you can't understand intrinsically that if you adjust one of those variables, then the others will also change???
"Research suggests the answer is "yes," with the caveat that it may not be matched dollar for dollar for everyone." That doesn't just scream "price elasticity of demand" to you???
Let me spell it out so you can follow (simplistically). Employers suddenly no longer have to pay healthcare costs. Essentially, their employees are now "cheaper". Now, in economics, you have what is called a "demand curve", which shows that for normal goods, when the cost goes down, DEMAND for those goods goes up. So, when the cost of employees goes down, the DEMAND for the number of those employees goes up (the labor market behaves as a normal good). The utility (cost / output) of an individual worker is not greater, so it makes sense that companies would want more of them. But, the SUPPLY of workers is staying the same, so this will push wages up. You can't push wages all the way up, because then you would be back to the same demand for workers. Instead, the worker wage increase will split the difference.