welfare vs wages

[Danzig]

http://www.slate.com/blogs/moneybox/...employees.html

'But corporate America as a whole has been so successful in squeezing the labor share of national income lower and lower that it's become a substantial constraint to businesses' ability to sell things to people. The cycle of low wages, low demand, weak hiring, weak bargaining power, and low wages just keeps grinding on.'


you'd think corporations would understand that if they paid more, their employees would spend more, thus driving up demand and creating jobs-with more people making money, spending more, etc