Is it genius or crazy to introduce a $70,000-a-year minimum wage?

April 14, 2015 7:11 PM

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Is it genius or crazy to introduce a $70,000-a-year minimum wage?

One CEO has decided to boldly go where few have gone before by implementing a $70,000-a-year minimum wage from an average salary of $48,000 currently. Dan Price, chief executive and founder of Gravity Payments, a credit-card payment processing company, will also cut his own $1 million annual salary to $70,000, according to a report in the New York Times. “Is anyone else freaking out right now?” he asked his employees. “I’m kind of freaking out.” He will use 75% to 80% of the firm’s projected $2.2 million profit for 2015 to pay the salaries, the paper reports.

Price was reportedly inspired by this 2010 study on happiness: the “Proceedings of the National Academy of Sciences.” Emotional well-being rises with income, but there is no progress beyond $75,000 per year, it found. “Low income exacerbates the emotional pain associated with such misfortunes as div...

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