outlawauron said:
kupomogli said:
phaedruss said:
kupomogli said:
Mystro-Sama said:
Doesn't this just cause inflation proportionally. |
Product costs have been going up substantially even without minimum wage increases. I live in Florida, and the minimum wage has went up less than $1 in atleast 15 years. At the same time, the majority of necessities like food items have went up $.50-$1 each while also coming in smaller sized portions. With how much costs have increased on product in the past 15 years compared to the how much minimum wage has went up, it's yet another example of the rich getting richer and poor getting poorer.
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There are many causes of inflation, the minimum wage is just one.
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Minimum wages increarsing inflation is minimal. Let's say Walmart has 50 people working per store. If there was a $2 minimum wage increase, for 8 hours a day, those 50 people would be paid $800 more per day per store. An additional $.01 per item or items that are more frequently purchased and they'd make far beyond that $800 they lost. How about that same $2 increase for a fast food restaurant where there's maybe 10 people working the entire day. That's $160. The cost increase in order to make that amount back for the company would be next to nothing.
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Well this is entirely wrong. It's not about making back the decreases but increasing profitability. Still being profitable isn't acceptable. So, in order to maintain that same level of profit, they're going to increase the price. Increases in taxation, minimum wage, and regulation lead to very fast increases in prices of the goods and services provided.
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Then, when someone doesn't increase their prices and eat the slight increase in cost, consumers will flock to them and the companies that DID raise their prices will lose their business. These said companies will then lower their prices to compete, because that is how true capitalism is supposed to work.
Which is what will happen, especially when it comes to those large companies that make millions of dollars a year, and would continue to even if the minimum wage is increased to $15 per hour. Though honestly, $15 is overkill, but it should at least make for an interesting experiment...
