This is their new claim: Worker hours have almost recovered to their prerecession level amid high levels of unemployment, implying that firms have preferred to meet slowly recovering demand with more hours from current workers instead of hiring new ones. The higher wages that would result from a salary threshold increase would create a much-needed incentive for firms to hire new workers by raising the cost of current workers’ overtime pay.
A higher salary threshold would encourage firms to hire new workers, including the long-term unemployed, directly reducing unemployment, rebuilding the middle class, and helping our economy grow. Evidence suggests that long-term unemployed workers are just as productive as other workers once they find a job. Giving firms an incentive to hire new workers could prevent the long-term unemployed from leaving the labor force permanently, which threatens to diminish our long-term GDP potential.
These people live in a make believe world. They forget how their artificial fixes always result in the opposite happening of what they intended. A salary threshold increase is raising the minimum wage. These fixes have inevitably resulted in fewer people working and overall average income decreasing. A business does not operate like the government has operated. A business receives income and when it spends more than it receives, the business will eventually have to close its doors. Then nobody has a job.
The only way to solve the problems the Marxist/Progressives claim to be solving is for them to stop with their theory based solutions. We need practical solutions. We must lower business taxes as well as personal taxes. We must eliminate harmful and punishing regulations, which is just about all of them. We must get the government out of business planning and allow the businesses to do their own planning based on the demands of the market place. The government cannot bail private businesses out of financial problems. The business owner must live with the consequences of his decisions; good or bad. Theory has never built a business and theory will never bring prosperity. Building and succeeding in business happens because the owner solves practical business problems every day. His grade is measured by his bottom line and not by memorizing theory.