This does not work in businesses with either low margins (profitability) and/or high labor intensity. You will not be able to obtain any new funding. In addition, this policy being only selectively applicable will increase wage differentials.
> Mr. Price ... would pay for the wage increases by cutting his own salary from nearly $1 million to $70,000
There's money in every successful company that could be redistributed — it's a moral choice whether you do so. If you prioritise your own comfort over that of the people you stand on, feel free to do so.
> and using 75 to 80 percent of the company’s anticipated $2.2 million in profit this year.
You forgot this part of the source of funds. This will not be a one-off reduction in profits. Increasing the wages of the 70 affected employees from an average of USD 48k to USD 70k translates into an annual cash outflow of at least ca. USD 1.5m. This reduction in cash flow will make it more difficult to (re)finance the business.
As said before, this is not viable for businesses with low margins and/or high labor intensity. So you imply that those business owners (i.e., with low margins or high labor intensity) prioritize their own comfort over that of the people they stand on?
