The Biden administration has discovered a back door into raising the effective minimum wage. Paying lucrative supplemental unemployment benefits, which is effectively subsidizing leisure, increases the opportunity cost of working and thereby places upward pressure on wages as employers seek to incentivize would-be employees to move off the couch and into the workforce. No minimum-wage legislation and political combat with the Republicans is required to implement this policy. The federal government need only keep the spigot open on supplemental unemployment benefits, and employers seeking to attract workers will have no choice but to increase the wages offered to compete. […]
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