I thought the wage increased was paid out of reduced profits, which activists see as excessive.
This post was authored by We Are Capitalists
How does increasing the cost to one party magically inject wealth into the economy?
The original meme proposes that increasing wages for low skill workers has a beneficial effect on the economy, as it increases the workers’ purchasing power, thus greater aggregate demand, thus higher employment, thus more purchasing power, etc. This is making the fallacy of only seeing what is directly in front of one’s eyes, and ignoring the unseen. They do not see the detrimental affects and the unseen “what might have been.”
As Hazlitt wrote in Economics in One Lesson, “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
For now, we will ignore the detrimental effects…
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Utopia, you are standing in it! 
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