Nearly 75-80% of Americans have stated that their wages have failed to keep pace with inflation.
David believes that increasing workers' wages to keep pace with the rising cost of living is necessary but also acknowledges that when businesses are faced with rising labor costs, they are forced to lay off workers, cut hours, turn to automation, and raise prices.
As a result, David has developed a plan where businesses would be incentivized to increase the wages of their employees through government tax credits that would be calculated based on the percentage that an employer raises his or her employees' wages. The more an employer raises wages, the bigger the tax credit. Under this plan, employers would be more likely to offer significant wage increases because the financial burden would be offset by the corresponding tax rebates.