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In the case you cite the third lathe would be free, so even if only two were needed it would make perfect sense to get the third and keep it for a replacement or parts, the only cost in acquiring the third lathe would be the cost of storing it. If you employee three employees at $10 an hour the minimum wage increases to $15 an hour you would retain all three up to the point that MFC equals MRP
No,it would be 3 lathes @ $10k each i see you can only argue if you manipulate my example. Come back when you can be honest.
How about just outlawing shovels and issue all construction workers a spoon?
Mao killed off many a countryman when he embarked upon infrastructure projects and elected to use hard manual labor instead of modern machinery. Efficiency is irrelevent when govt runs things.
Leftists would say he created jobs...and for gravediggers at that.
No,it would be 3 lathes @ $10k each i see you can only argue if you manipulate my example. Come back when you can be honest.
I had not intention of manipulating your example, this is what you said:
Quote:
Originally Posted by Frank DeForrest Emotional arguments aside; if a machine shop had the choice to purchase 2 lathes for $30k, or three lathes for $30k, which would make more sense from a productivity standpoint? Labor shouldn't be seen any differently.
And the response I gave was appropriate so calm down.
Here you go, figure it out for yourself then come back and tell me that if a company has 3 employees @ $10 an hour and the minimum wage goes to $15 they will fire one of them.
From your own article:
"In a competitive labor market, an increase in the minimum wage reduces employment and increases unemployment.
A minimum wage could increase employment in a monopsony labor market at the same time it increases wages.
Some economists argue that the monopsony model characterizes all labor markets and that this justifies a national increase in the minimum wage. Most economists argue that a nationwide increase in the minimum wage would reduce employment among low-wage workers."
Unless you can prove that we are in a monopsony market, I don't see how raising the minimum wage is a good thing.
That's not the way business operates, they only employ the number of employees they need, if they need three employees they retain three employees, if they only need two then they lay one off. Here is a nice article that will explain it to you: http://www.brookscollegeprep.org/sit...micro_ch19.pdf
When you force an employer to raise his wages, he will suddenly realize that he doesn't actually "need" X employees, and he will get rid of them. It has happened already. There have been stories of it happening, already. You pretending that they don't happen doesn't mean that they don't happen. If they need two people for the morning shift, and two people for the evening shift, they can also put everyone on part time, instead of having full time workers...because you forced them to pay more. Now they don't want to give you benefits, which means that your $15/hr doesn't go that far afterall since you have to pay for your own benefits. You keep acting like nothing else changes. Ask the 500 Berkley workers how that worked out for them. Ask the pizza employees in San Fran how that worked out for them. Ask that pizza guy up in Seattle how that worked out for him.
There's been plenty of nice threads filled with posts that have explained that to you.
The pizza guy in Seattle found another pizza job, so I think he is doing okay. It is funny how right wingers pretend like jobs won't exist if minimum wage goes up a little bit. Also, why would any employer hire employees they don't need just because minimum wage is low? If one person can sweep the floors, why hire 3 people to sweep?
Do huge companies and cartels control wages through monopsony in the market today? The vast majority of the employees are hired by small businesses.
"In rural counties in some states, Walmart exerts such power over the local labor market that it depresses wages by more than six percent, according to a study conducted by two University of Connecticut economists".
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i see you can only argue if you manipulate my example. Come back when you can be honest.
