Switzerland to Vote on National Wage - Everyone Would Receive 1,700/month

[sabvre42]

c03n3nj0 said:

I'm crap at economics, so don't let this question be a judge of character if it turns out to be stupid, but

if everyone was paid a guaranteed amount of money wouldn't that make the prices for everyday goods, like bread and toothpaste, to raise in price? I mean, if I know my costumers all make 1,700 euros on top of whatever they make I'd like raise the price of my sandwich twofold. In the end, with some inflation thrown in, wouldn't the people be left in the same situation they were in before? 

Unless, of course, the Swiss government would ban that sort of behavior.

 

Cost of living would rise, but for other reasons.

 

Wages would rise for service jobs, which would stack along all industries to cause fast food (farm help, drivers, cooks, cashiers, etc) to be like $12-15 a person... cell phones, cable tv, etc would also raise wages... even gas stations.

The added taxes wouldn't help either.