People would be happy. With more money to spend, people in other countries would be buying goods manufactured in their own countries, not export them to America, he said. It's not that simple. To give that kind of a raise, firms would be forced to increase the price of their products. In the end, no one benefits.
More pay is no good if prices for goods equal or surpass the higher salary.
A company has to produce a product that people want or need. Then they have to sell it at a reasonable price, but high enough to pay taxes and replace machinery, and to pay wages, pensions and such for workers and all the other little things necessary to keep a business thriving, and still make a profit. Take a country such as Sri Lanka, which has been involved in a civil war for years. The pay there is just 47 cents an hour. There are many nations like this one.