A maximum wage could save 83 million jobs, according to new research by Professor Gurn Blanston of UC Anaheim. He suggests a $50 maximum for Americans with college degrees, $21.50 for high school graduates, and $7.35 for teens.
Companies would be much more competitive and likely to secure stronger investments with a stable labor cost structure, according to his analysis. By limiting the amount of payroll expenses, over 90 percent of U.S. companies could spend more on capital and secure higher returns for their equity holders. This would allow for expansion and increased jobs as well, a virtuous cycle.
Within two decades, simple math shows that firms with a maximum wage control could expand to employ everyone in the world. Imagine that!
Happy April Fools Day!