[prostoalex]

> Theoretically, economics would dictate that by paying people $70K who would get paid $40K would make them fight like crazy to keep their jobs, wouldn't it?

From the article, it sounds like his business had a host of employees below and above that threshold, and the ones above felt resentful and unappreciated, with some people quitting. Remains to be seen if it will have any effect on the business, but it's the people above that level that tend to do non-trivial work, and are harder to train and replace.