Toddsterpatriot
Diamond Member
- May 3, 2011
- 105,342
- 38,173
If you have a different example, share.
Sure. Company has $1,000,000 in sales. $500,000 COGS and $300,000 wage expenses. Sales increase by $100,000 and wage expense increases by $20,000. Profit increases $30,000.
How does the magical minimum wage increase lead to 5 times more spending than the actual wage increase?
Why wouldn't it? The company has few employees who got the raise and lots of customers who got a big wage increase.
For that to occur, you'd have other companies that had an increased wage expense without an increase in sales.
Why? Every company has way more customers than employees. Or they should.
Why? Every company has way more customers than employees.
Wow. Just wow.
Assume the economy has 10 companies like my example.
Each company has $1,000,000 in sales. $500,000 COGS and $300,000 wage expenses. Each one increases wages by $100,000.
I don't care how many customers these companies have, the minimum wage hike only added $1,000,000 to possible consumer spending.
Show me how that extra million gives those 10 companies more than $11 million in total sales.