But it already exists and dates back to 1938 – the minimum wage.
When wages are too low for even full-time workers to buy basic necessities, workers turn to taxpayer-funded programs like food stamps and Medicaid. A surprising beneficiary is the low-wage employer who is being subsidized by taxpayers.
It’s a perverse incentive program. A corner business or giant retailer like Costco that pays a starting wage of $11.50 an hour gets no government subsidy while a store across the street paying the federal minimum wage of $7.25 is actually getting a government handout because it pays a substandard wage. This does not make economic sense.