There’s not much commentary for this. It simply demonstrates the staggering ignorance of things economic by the left. To be sure, not all coorporate tax cuts would result in increases of wages for the workers. Indeed, perhaps, not even most tax cuts. Also, these companies aren’t doing this because they love their workers this much. It’s an investment in which these companies expect a return.
So, why are they doing this? This isn’t hard …….. Trump is slowing the flow of importing cheap labor into the US. The US still has the largest workforce in the free world, and is the world’s largest consumer nation. Couple that with the reduction of the coorporate tax rate, which brings incentive to have the companies in the US ….. well, they want to keep their workers! Add to that the growth rate of the GDP (soon to be officially the highest since 2005!) and it’s easy to see why these huge coorporations are giving bonuses and increasing wages.
Additional thoughts ……..
This calls into serious question the need for a federal minimum wage law. When the minimum wage for these coorporations go up like this, it gives an increased pressure for the rest of the employers to increase their wages, else, all the good talent will go to the higher paying jobs. Even an increase in their minimum wages produces pressure on the wages paid to people with higher wages.
Also, while we’re not there, yet, we need to keep an eye on inflation. Unless productivity increases among the workers, coupled with lower taxes for the workers, and the increase in our GDP, we’re going to see inflation. How bad? IDK. But, I do believe if we continue to lower the flow of importing labor, the increases in the wealth of the average American will easily out-balance the inflationary propensity of these recent events. This is what winning looks like!