I think the point in his hypothetical is that the whole economy pays more for unskilled workers (or at least underskilled), not just one business. This kind of artificial wage increase might destabilize things on short term, but long term there's no reason to think it wouldn't bolster the economy even more than giving rich folks more money (though it should be pointed out that it would give a steroid injection to the manufactured goods side of our economy, and not much of anything to the service side).
Spexxvet, details aside, I think you've got the right idea. Of course it helps the economy to allow competition, but why must the competitors be so bloodthirsty all the damned time? There's more than one way to help out the economic state.
Why can't we take a step back and realize when so much is plenty? That the money for my 12th car could just as well be spent on someone else's 1st? <southernhickvoice> My poppa always said if you aren't acting out of love, you shouldn't act at all. </southernhickvoice>
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Hoocha, hoocha, hoocha... lobster.
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