Comment by carlosjobim

> Does this actually work?

Higher wages means workers and businesses have to be more effective. So more goods and services are produced and available. It's not a zero-sum game.

"But workers are already as effective as they can be"

Great, in that case you have the margins to pay higher wages.

A high wage / high cost society is great for workers and for businesses which actually do real work and produce real goods and services. It's not great for everybody else. Ie those who don't work, and businesses who doesn't make a high contribution.