Final answer:
Increasing a company's minimum pay to $70,000 could be both an altruistically motivated decision and a strategic business move aimed at improving productivity and the company's image. Critics express concern over economic pressures and labor market distortions, yet historically, moderate wage increases have not had significant adverse effects on employment.
Step-by-step explanation:
The expression that a company can 'do well by doing good' suggests that by engaging in socially responsible activities, a company can also benefit financially. In the case of increasing minimum pay to $70,000, the motive could have been both altruistic and a strategic business decision. Companies that increase wages might do so to boost employee morale, productivity, and loyalty, as well as to enhance their public image, which can, in turn, drive business success.
There can certainly be multiple reasons for a company to decide to increase minimum pay, combining ethical considerations and business tactics. Some may view it as an investment in human capital. It is not necessary to attribute the decision to a single reason.
Some critics might argue that such a hefty wage increase might lead to various economic pressures, including the need to increase prices or reduce workforce to accommodate the wage hike. Others could argue that it could distort the labor market or the economic principle of supply and demand. However, increasing the minimum wage has historically had only a small impact on employment when set close to the equilibrium wage for low-skill labor.
Whether or not to increase the minimum wage is a complex issue with arguments on both sides; it can stir up a conflict of goals between social benefit and economic practicality. Ultimately, there is no simple answer, and whether the increase in minimum wage is regarded as positive or negative can depend on one's perspective on economic policy and social justice.