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All things tend to not remain the same, kind of my point in the previous post, which you agreed with, so im not really understanding your argument.
That being said, you are wrong, it is not mathematically impossible for prices to stay the same with labor cost going up. Your argument would assume that the cost of labor outweighs profit or cut into profit so much that it would cause changes elsewhere within the business, and that wouldnt always be true. You are arguing absolutism, or better yet, simply the perfect scenario for your argument. That is being argumentative for the heck of it, but this is a political forum, so what can you expect ?
That is correct. When labor cost increases, the business must find ways to mitigate the increase so that it won't be passed on to consumers unless it's the last resort.
So please tell me what are those mitigation and how they are good for the poor.
You do understand that Ford's raising his workers wages was not coerced or forced by any law ... right? It was a radical idea at the time since it was considerably higher than prevailing wages.
Ummm....that's exactly what I was saying.
Not sure how you took it otherwise.
The fact is, just because a wage hike had that effect for Ford at that time does not mean an arbitrary raise in the minimum wage will have the same effect for all companies of every size across the country today.
What do they do when they can't afford to keep the employees they need because of wage increase?
They cut hours, cut benefits and learn how to use automation and other ways to streamline efficiency. Eventually, many businesses learn to do the same amount of work with less employees...and when that happens, those jobs are gone forever.
They cut hours, cut benefits and learn how to use automation and other ways to streamline efficiency. Eventually, many businesses learn to do the same amount of work with less employees...and when that happens, those jobs are gone forever.
That happens already, no need to raise minimum wage for these things to happen. You could lower minimum wage to a buck an hour and employers would still cut hours, benefits, and use automation to make more money.
That is absolutely not true. In that scenario, assuming that the company isn't just breaking even, you eat the lost margin, more often than not.
I'll keep going back to healthcare -- a labor cost that goes up every year, yet no company passes that through to their customers with lockstep price increases.
The idea that companies just keep passing through all their expenses to customers is a nonsense taking point. It doesn't exist in the real world.
Really?
Then why us the cost of a happy meal double what it was in the 80's?
Why is ice cream $6.75 for a pint and a half now instead of 3.25 for a half gallon?
Why are portions getting smaller while prices go up?
Why was a Mustang GT $3500.00 in 1972 and $35000.00 in 2016?
Anyone who thinks increasing labor costs don't contribute to inflation is just a flat out moron.
And how much more would my salary be worth now if minimum wage was still $2.90/hr that I started at in 1979?
Minimum wage hikes put people on a one step up, two steps back treadmill their whole lives, canceling out the buying power that comes by earning more over time by gaining experience and getting raises and promotions.
Last edited by FatBob96; 04-30-2016 at 06:12 AM..
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