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Buy China - shop Wal-Mart!!!! Help them build another empty high-rise.....when their bubble bursts, I bet the Chinese don't have the same reaction as lowly Americans did over the tear down of this country....there's always another ignorant country to believe they are being blessed with goods, money, and jobs. Next? Only this time, I won't give a crap about any other country. Compassion is near non-existant for this honorable, hard working American country idiot!
never mind....
Are you really so blind you think its Wal-Mart. Look around then. The Wal-Mart thing is just anther union ploy ;pure and simple. In fact unions support importing cheap labor thru amnesty. Just as they time and again have sold their so call future brothers out by keep theirs and selling the future employees out.
And you missed my point entirely as well. I DID in fact get yours. My point was...There are no mom and pops competing with walmart.
If theres no walmart the mom and pops can directly pass on those costs and will exist just fine. and those costs are a small amount of the product.
BTW you should note that increases in minimum wage do NOT translate into a 1-1 price increase. IE doubling minimum wage does not suddenly double the cost of all products and services.
It's up to every individual mom n' pop to determine how they handle an increased minimum wage. Most will raise prices, some will not. The elasticity of demand will make it clear what they can and can't do. Walmart does not have elasticity of demand issues. People will not stop going to Wal-mart because the price increases will be inconsequential. But, many mom and pops will go out simply because some will be forced to reconcile elasticity with actual revenues, which is a conundrum produced by city policy, not actual market demands. It's antithetical.
Buy China - shop Wal-Mart!!!! Help them build another empty high-rise.....when their bubble bursts, I bet the Chinese don't have the same reaction as lowly Americans did over the tear down of this country....there's always another ignorant country to believe they are being blessed with goods, money, and jobs. Next? Only this time, I won't give a crap about any other country. Compassion is near non-existant for this honorable, hard working American country idiot!
never mind....
I'm not a fan of Walmart, but I don't understand the "Buy China" thing. Most things these days are made in China. Walmart has 80-90 percent of the same brands and same items as just about any other store, including smaller stores. I wouldn't buy produce at Walmart, but buying a Dewalt drill at Walmart is the same Dewalt drill you would be buying at a local hardware store.
It's up to every individual mom n' pop to determine how they handle an increased minimum wage. Most will raise prices, some will not. The elasticity of demand will make it clear what they can and can't do. Walmart does not have elasticity of demand issues. It will not go out of business due to increased prices throughout, but many mom and pops will go out simply because some will be forced to reconcile elasticity with actual revenues.
Given the current price differentials, I dont think the elasticity of demand is the driving force of people purchasing at mom and pops. Yes its there, but theres a difference here. quality matters. Mom and pops are not winning on price. I think we will both agree on that. They win on service and knowledge. The elasticity of demand of the product is not solely on price when considering the mom and pop vs Walmart. The trouble is that you apparently don’t understand why the people purchasing from mom and pops are doing what they’re doing. You're applying a elasticity of demand equation without even trying to picture what those equations are supposed to be saying about the actual behavior of the people purchasing from a mom and pop. I could easily argue that the price increase foisted on the base products would increase mom and pop sales. Its not a clearly defined enough calculation by either of us to predict the effect.
why is it bad to raise the minimum wage with inflation?
The min wage in real dollars was much higher in the past and during periods when we had a very good economy.
It is not necessary for starters. Inflation=general price increase, and wages are the price of labor. All other things equal, wages will go up with inflation with no action by government.
It is not necessary for starters. Inflation=general price increase, and wages are the price of labor. All other things equal, wages will go up with inflation with no action by government.
No they won't. While wages are sticky against drops, they are not as sticky vs inflation. If they were minimum wage would be over $10/hr right now without government intervention....
No they won't. While wages are sticky against drops, they are not as sticky vs inflation. If they were minimum wage would be over $10/hr right now without government intervention....
Given the current price differentials, I dont think the elasticity of demand is the driving force of people purchasing at mom and pops. Yes its there, but theres a difference here. quality matters. Mom and pops are not winning on price. I think we will both agree on that. They win on service and knowledge. The elasticity of demand of the product is not solely on price when considering the mom and pop vs Walmart. The trouble is that you apparently don’t understand why the people purchasing from mom and pops are doing what they’re doing. You're applying a elasticity of demand equation without even trying to picture what those equations are supposed to be saying about the actual behavior of the people purchasing from a mom and pop. I could easily argue that the price increase foisted on the base products would increase mom and pop sales. Its not a clearly defined enough calculation by either of us to predict the effect.
Elasticity of demand deals specifically with how much a price can be raised before demand drops. This is a very specific problem for small businesses.
My argument is specific to Washington DC, not mom n' pops in general. The DC area has seen a renaissance of mom n' pop boutique and specialty shops that don't compete with Wal-mart. They will, however, be forced to pay the same minimum wage as Wal-mart. We are not talking about buying socks, DVDs, or flashlights. We're talking shops that typically operate on the margins in general and don't have a lot of room to suck up additional labor costs. These types of stores already come and go without much notice. An $11.50 minimum wage is a de facto barrier to entry...it just happens to rear its ugly head AFTER the shop is open if the DC city government gets what its wants. Many shops will close. Some will never open because of the costs of doing business are insurmountable. Like I said, it's antithetical.
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