When the city of Seattle recently voted to increase the minimum wage to $15 an hour, some critics (like me) snarked that if $15 would help workers why not raise it to $20, $25, or even $30 an hour.
Apparently, one CEO in Seattle didn’t realize we were joking. Dan Price of Gravity Payments recently announced that every one of his 120 employees would soon be making a minimum of $70,000 a year—a minimum wage of $33.65 an hour.
The media reaction to the story has been about as fawning and uncritical as you would expect. While Price is rightfully being praised for his generosity (he’s cutting his own pay from $1 million to $70,000 a year to fund the pay increase), few people have—so far—pointed out how his largess may soon put his employees out of a job. Here’s why.