This is lazy explanation that's easy to agree with if you don't think very hard about it. Two reasons:
1. A shitty job at $15 an hour is equally unappealing at $16 an hour. Someone who doesn't want the crap hours, crap boss, and crap customer interactions isn't going to change their mind over an extra buck an hour. The money isn't the problem, it's that companies make it _not rewarding_ to work.
2. Raising pay ratchets up inflation, and isn't a response. Cause and effect are reversed. Unlike food, gas, houses, movie tickets, and restaurants, the amount of money transacted in wages/salary cannot go down. McDonald's can't tell their employees that due to supply and demand, they are only going to make $14.83 an hour this week. Imagine if your company lowered wages due to the "expected recession". You would start looking for a new role. This means pay increases can never go down again after a temporary bump. I won't say it's the cause, but it artificially limits deflation from ever pulling things back. Like an elevator that can only go up.
1. A shitty job at $15 an hour is equally unappealing at $16 an hour. Someone who doesn't want the crap hours, crap boss, and crap customer interactions isn't going to change their mind over an extra buck an hour. The money isn't the problem, it's that companies make it _not rewarding_ to work.
2. Raising pay ratchets up inflation, and isn't a response. Cause and effect are reversed. Unlike food, gas, houses, movie tickets, and restaurants, the amount of money transacted in wages/salary cannot go down. McDonald's can't tell their employees that due to supply and demand, they are only going to make $14.83 an hour this week. Imagine if your company lowered wages due to the "expected recession". You would start looking for a new role. This means pay increases can never go down again after a temporary bump. I won't say it's the cause, but it artificially limits deflation from ever pulling things back. Like an elevator that can only go up.