itfitzme
VIP Member
Raising the minimum wage is simple...
1) A company either passes the increased labor cost to their customers with higher prices, which in the long run screws the workers with higher priced goods.
2) A company goes out of business if they can't take on the increased labor cost.
3) They fire some workers to pay the remaining workers more each hour.
Wrong, on all three.
First, increased labor costs aren't necessarily "passed on" to the customer. It depends on what the current wages and profit margin are. It also depends on what the upstream margins are. For instance, Wallmart would easily absorb an increase in wages with no change in prices. You are mistaken.
Your second point doesn't mean anything. It's an "if". Sure, " if" .... Followed by whatever...
The third point makes absolutely no business sense. Production output, and thereby, sales volume, is directly proportional to the amount of labor. Reducing the labor employeed reduces the amount of oroduct made, the amount sold, income, and therby the amount of total wages paid. Reducing employees always reduces income. Ther isn't anything to pay other employees more with.