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I agree with where you're coming from, but your point would have been better illustrated if you hadn't cited businesses in two industries that are dying off anyway. These two industries are on the edge of the cliff, all the wage hike did was push them over a little sooner.
Last edited by WhipperSnapper 88; 05-02-2015 at 08:58 PM..
A very basic principle in economics is that increasing prices causes less consumption and declining prices causes more consumption. Therefore, it is inevitable that increasing labor costs will produce less demand for those laborers and more unemployment.
Thats only 1/2 true. The thing that stimulates the economy is spending.
Hire a company to remodel your bathroom (and construction jobs get stimulated.)
Go to a restaurant (and waiters, cooks, and food vendor jobs get stimulated.)
Buy a cell phone or get cable TV (and large corporations get stimulated.)
Increasing min wage gives workers more money. The workers then use that money in home improvement, restaurants, and buying cell phones and cable TV (and that stimulates the whole economy.)
False, whole industries work on very low profit margins.
And yet lots of people get paid well above minimum wage. The way you guys act, you would think people only make minimum wage and no business can afford to pay their workers a penny more.
So what about the employees who have been employed? Are you suggesting they should just go eat dirty as now they are out of jobs because you think their employer should just go under?
Businesses go under all the time for various reasons. My theory has always been, if your employer can't afford to pay you your paycheck, you no longer work for that employer.
Businesses go under all the time for various reasons. My theory has always been, if your employer can't afford to pay you your paycheck, you no longer work for that employer.
Wait a minute, the said business was running OK until you raised the minimum wage. I guess their employees should just eat dirty since "businesses go under all the time."
And yet lots of people get paid well above minimum wage. The way you guys act, you would think people only make minimum wage and no business can afford to pay their workers a penny more.
Some jobs require a stronger skill set than others. You would think even liberals could figure that out.
Comic book stores were on life support anyways. It's not minimum wage's fault that fewer kids read comic books. Is the OP actually proposing that the nation should halt inflationary forces in order to support comic book store owners? And we really don't need book stores when we have libraries. They are truly an underutilized resource, which is sad.
A very basic principle in economics is that increasing prices causes less consumption and declining prices causes more consumption. Therefore, it is inevitable that increasing labor costs will produce less demand for those laborers and more unemployment.
So you passed Econ 101, congratulations! Unfortunately for you the real world isn't so simple.
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