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Much higher costs and they have much higher prices as a result.
Two things can happen if your raise the price of labor
1. The price of the product goes up to offset the costs
2. People get laid off or hours reduced to keep costs the same
If the costs are too high to sell the product in the market and hours cannot be cut then the company goes out of business. This happens more often than people realize since so much can be found on line with from companies with reduced overhead.
In this case, the stores are operating under reduced profits. Higher wages can result in higher prices, but not always and not necessarily significant price increases.
Cost of a quarter pounder in the UK, about £4. Cost of a quarter pounder in the US, $3.79 give or take. Oh yeah, the cost of goods in the UK is so much higher do us all a favor, when you make comments like that, make sure that the other person you are refuting didn't live in the UK for 6 months and knows how much things cost there
As it has been demonstrated every time there is a minimum wage increase, the price of products and services do not go up in a 1:1 ratio or whatever it is you guys insinuate.
Cost of a quarter pounder in the UK, about £4. Cost of a quarter pounder in the US, $3.79 give or take. Oh yeah, the cost of goods in the UK is so much higher do us all a favor, when you make comments like that, make sure that the other person you are refuting didn't live in the UK for 6 months and knows how much things cost there
As it has been demonstrated every time there is a minimum wage increase, the price of products and services do not go up in a 1:1 ratio or whatever it is you guys insinuate.
4 pounds is currently $6.59 or about 40% more. Damn near the exact same price
Someone living in uk for 6 months should have learned about the exchange rate by now.
I'm just surprised that there two pretzel stores in the same mall selling an undifferentiated product that is so price sensitive people will walk to the other end of the mall.
In this case, the stores are operating under reduced profits. Higher wages can result in higher prices, but not always and not necessarily significant price increases.
It depends on how labor intensive the product is the create. Something with a high material costs but a low labor cost will not be affected as much as something with low material costs and high labor costs.
Generally speaking, paying just above the minimum wage provides you a much higher quality of worker for very little total costs. The problem with raising the minimums wage is not only the bottom tier price increase but the follow increase of pay all along the leadership chain.
Wouldn't surprise me that someone who never lived abroad in his life doesn't know what purchasing power means. Exchange rate means squat.
Exchange rate is not a useful measure for measuring the cost of living. You need to take purchasing power into account, as well.
What was that?
Local Purchasing Power in United Kingdom is 29.31% lower than in United States
Moderator cut: link removed, linking to competitor sites is not allowed
What was that?
Local Purchasing Power in United Kingdom is 29.31% lower than in United States
Moderator cut: link removed, linking to competitor sites is not allowed
Minimum wage is lower in the UK, thus, wages across the board are lower across the country. RN in the US makes $60k roughly, NHS RN makes £27k. Gallon of milk in the US costs $4.25 let's say, in the UK about £3.50 for 6 pints (0.9 gallons). Tesco sells a lot of storebrand food products for under £2, store brand prices where I live is typically no less than $3. Internet access in the US for shared 50Mb connection, about $60 a month. In the UK, £25. Costs for a cell phone with unlimited data is about $60 in the US, wife pays roughly £20 for hers. Dozen eggs in the US, $2. Dozen in the UK, 65-89 pence. Small space heater that we used in the winter, one of those simple fan forced heaters, cost £5 at Robert Dyas, same in the US cost me about $12. By the way, all UK prices have the sales tax (actually VAT in the UK, sales tax on producing it, sales tax on buying it) factored in already. US prices don't
Wouldn't surprise me that someone who never lived abroad in his life doesn't know what purchasing power means. Exchange rate means squat.
Exchange rate is not a useful measure for measuring the cost of living. You need to take purchasing power into account, as well.
I'm not quite sure how that applies in the context of this conversation. Most companies don't care about the PPP. They just care what they care about the costs and the selling price. On the other hand though, it doesn't look like the exchange rate is important either.
I'm not quite sure how that applies in the context of this conversation. Most companies don't care about the PPP. They just care what they care about the costs and the selling price. On the other hand though, it doesn't look like the exchange rate is important either.
This is pretty much in line with what I experienced and my wife, too. When she comes here, she remarks how groceries are more expensive here than back home. It's true. Basically what I'm saying is, I don't buy the argument that small businesses in the US are on the verge of extinction any day now if Democrats are kept in charge. If that was the case, small businesses in Europe would have gone out of business decades ago. Fact of the matter is, I've seen more small businesses in the UK than I do in my city. Very sad
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do us all a favor, when you make comments like that, make sure that the other person you are refuting didn't live in the UK for 6 months and knows how much things cost there 
