Brain357
Platinum Member
- Mar 30, 2013
- 37,068
- 4,189
Incorrect. Increased income means higher prices, which mean lower sales. Inflation always eats up any wage increase and the only way to make a minimum wage work is to keep it so low that it doesn't really make much of a difference. That's what we've been doing. Here's a real life scenario. I need an income of $65,000/year to comfortably raise a family of three kids. We're not talking college here at all. Now, who's responsible to generate that income, me or a company that offers me a job at $7/hour?What happens when your customers have increased incomes?
Won't do them much good when all the prices have been proportionally jacked up, will it?
Well you would have to prove that is what will happen. Increased sales keep costs down.
Lower COSTS keep costs down. Increased sales don't magically appear out of nowhere. In fact, on top of higher costs, there is little reason to expect higher sales.
Joe is in the market to buy an American car. He can buy from Ford or from GM. But GM has perhaps just considerably jacked up the wages to its employees and as a result their cost per car has been jacked up too. Joe, working on a fixed budget and with a little bit of economic common sense (which his pinky43262 lacks), decides he really can't afford the added expense of the GM under such circumstances. So, he elects to buy the Ford.
AS the laws of supply and demand would have told you, pinky, the increased costs (payroll) to GM resulted in higher costs for their product and thus lower sales.
Common sense. Get some.
Min wage would effect every employer the same. Increased income means increased sales.
No if people have more money they can spend more, increased sales. Increased sales counter increase in wages.