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You are assuming a wash here with increased revenue.
That is not guaranteed.
In aggregate, it actually is. Every dollar spent is a dollar earned, by definition. So if the total world expenses go up, so do total world incomes. Obviously the impact won't be uniform: a company that employs exclusively minimum wage workers and sells exclusively to billionaires would likely see costs increase without any corresponding increase in demand. But it's very likely that McDonald's and Wal-Mart not only employ people at/near minimum wage, but also have a significant customer base making at/near minimum wage. Those customers will have a net increase in purchasing power, which benefits those companies.
Quote:
Originally Posted by Mathguy
Never talked about that happening.
Restaurants would be able to pass along the costs much better than someone selling commodities like books. You don't exactly have people ordering Big Macs off Amazon.
You're restating what I said, so maybe I misunderstood your original point.
Quote:
Originally Posted by Mathguy
His point is that more people making the $15/hour can afford to also buy burgers.
You've essentially shifted the demand curve by "enriching" more people.
However, the higher costs get passed along to the consumer so costs go up.
In a closed system if everyone is making a comparable wage it becomes the tail chasing the dog like in hyper-inflation economies like Zimbabwe in recent years where they had trillion dollar notes in their currency.
In a system with a wide range of incomes the idea is that the richer people will absorb some of the costs while not benefiting from the higher minimum wage and thus relatively the low paid workers will be better off in terms of buying power.
Zimbabwe did not achieve hyper-inflation with minimum wage increases, but rather with supply shortages that drove up prices. Ditto the Weimar Republic. Although theoretically Congress could pass a law that increased the minimum wage 10% per minute or something, that would obviously be problematic and unlikely.
That 2nd link is the same company as the first link.
They were referring to the cheap crap made in China. They don't want to offshore.
They want to stay in the US. And they've been in Seattle since 1972.
But the added cost of millions in labor was enough to drive them to another state.
Yeah yeah...the proverbial.."If they can't absorb the higher cost of labor they don't deserve to be in business".
Well they are not closing up shop. They are just moving to where they can stay competitive.
Well congrats to them for suckering Americans to work for less by simply moving their company to a lower minimum wage state. I wonder how many of those 100 employees relocated to make even less money in Nevada?
Well congrats to them for suckering Americans to work for less by simply moving their company to a lower minimum wage state. I wonder how many of those 100 employees relocated to make even less money in Nevada?
You forgot that your minimum wage drove them away. Also what about those employees who lost job because of your minimum wage policy? Should they just go eat dirty now?
You forgot that your minimum wage drove them away. Also what about those employees who lost job because of your minimum wage policy? Should they just go eat dirty now?
I assume the imaginary people who lose their jobs due to higher minimum wages can survive on unicorn meat.
You forgot that your minimum wage drove them away. Also what about those employees who lost job because of your minimum wage policy? Should they just go eat dirty now?
Actually those factory workers were making well above minimum wage, cheap labor and free trade is what sent those jobs overseas. If only we could bring back 3rd world conditions to the US, so that people can make pennies on the dollar.
Actually those factory workers were making well above minimum wage, cheap labor and free trade is what sent those jobs overseas. If only we could bring back 3rd world conditions to the US, so that people can make pennies on the dollar.
Overseas ? That company is just moving some mfg and distribution to Reno, NV.
And they did offer those people jobs if they moved with the company.
COL in Reno is much less than San Francisco so their money will go further if they move.
Overseas ? That company is just moving some mfg and distribution to Reno, NV.
And they did offer those people jobs if they moved with the company.
COL in Reno is much less than San Francisco so their money will go further if they move.
Huh? You realize I was commenting on someone else's post and we are not talking about the same thing, right?
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