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Except those government handouts amount to a subsidy for employers who pay low wages, which in turn encourages people to work for low wages and employers to pay those wages.
that is false. If (for example) the government were to cut food stamps tomorrow, there is no mechanism by which that would force minimum wage employers to increase their salary, nor any mechanism by which such a move would force the low-skill workforce to suddenly have greater value-added, justifying such an increase.
Back when I was an unskilled worker, which was in the '50s and early '60s, wages in comparison to the cost of things was much higher than it is now, but there weren't all the government handouts that we have today. It seems to me that the economy was a lot stronger as a result.
Yeah. Bombing your industrial competition into ash and poverty and grime helps, too.