Submission statement: Democratic lawmakers have criticized companies who have workers which receive Medicaid benefits, arguing that this is a form of corporate welfare and that these companies should pay their employees a living wage. Lawmakers in Colorado and New Jersey are proposing a law which will fine companies for each Medicaid recipient they employ. There is no evidence that Medicaid decreases the wages of employees, like some critics assert. Because Medicaid eligibility depends on household income and size, these laws will likely cause employment discrimination against unpartnered workers and workers with children, who are often among those with most need.
This article is relevant to NL since it reflects how laws can have unintended side effects that must be considered, and potential problems with attempting to use state power to force wages higher than their equilibrium place.
Posted by quiplaam