The GOP claims to be the party of the working man, but it is really the party of low wages, as evidenced by its passionate opposition to a higher minimum wage and unions. Further evidence was provided recently by GOP governors and legislators cutting off federal UI before the September deadline, even though it cost their states nothing. What is going on here?
Obviously, all of the GOP’s DNA is pro-business, not pro-labor. Higher wages mean, in many cases, lower profits for their donor class. The problem isn’t just with business, however; consumers benefit from low prices, and investors (often not business people) enjoy higher asset prices. Many of these people are elderly, a key support group for Republicans.
The bottom line is that there is a large constituency, not limited to business people, for low wages. Unless Biden manages to thread a needle, any successful efforts to increase wages are going to have negative impacts on other groups that vote in large numbers. I’m not sure the country is completely prepared to deal with that turn of events.