Build with Leila Hormozi The Truth About Minimum Wage Increase | Ep 67
Aug 29, 2023
The discussion tackles the implications of raising the minimum wage, highlighting both benefits and potential pitfalls. It dives into how higher wages can spark employee salary increases but may also lead to layoffs and business adaptations. Concerns over increased technology reliance and job losses for lower-skilled workers are front and center. Predictions suggest inflation and outsourcing might follow suit, creating a complex landscape for both employees and employers.
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Minimum Wage Increase's Ripple Effect
- Raising minimum wage increases all wages, affecting all businesses.
- This is because exempt employee salaries must also rise to maintain their classification.
California Exodus
- California's minimum wage increase led to many businesses leaving the state.
- Leila Hormozi observes this trend firsthand in Las Vegas, where many new arrivals are Californian business owners.
Treating Symptoms vs. Root Cause
- Raising the minimum wage addresses a symptom, not the root cause, of economic problems.
- Focusing on symptoms exacerbates the overall economic situation.