Sen Sanders is delighted, many Amazon workers are getting a $4.00 an hour raise. He found many Amazon workers were getting SNAP benefits and introduced legislation to fine companies who paid too low wages.
Salary compression will raise the pay for those already earning $15.00 an hour now that the lowest level job earns that.
But the total story is that many of these workers will now be ineligible for their SNAP and perhaps government health benefits.
In addition, Amazon is eliminating an incentive stock plan that allowed these workers to earn shares of Amazon. Workers preferred cash to the value of stock; very likely a major mistake in the long run.
Now a couple working at the lowest paying job at Amazon will earn more that the median family income in the US. Do you see consequences on the horizon?
In short order those cheering workers will realize they gained less than their euphoria indicates. They are treading water. Let’s hope many don’t suffer the fate of increased automation to offset the higher wage costs.
The key to a better future is not $15 an hour, but getting a better, higher skilled job.