![Lower prices. Wouldn't that be nice. [1284x991 - 583KB]](https://pic8.co/sh/tqoUkQ.png){kind=link}
Except this commie is still wrong.
Except this commie is still wrong.
Dipshit argues against other dipshits.
Prices won’t go up due to the wage hike. Unemployment will. Prices go up based on volume of money chasing volume of goods. That’s it.
With the same amount of money versus a more expensive work force, work force volume will be reduced to accommodate the available funds. Thus, the volume of sub-$15 workers will be reduced and automation, layoffs, relocations, or outright closures will take place.
Dipshit argues against other dipshits.
Prices won’t go up due to the wage hike. Unemployment will. Prices go up based on volume of money chasing volume of goods. That’s it.
With the same amount of money versus a more expensive work force, work force volume will be reduced to accommodate the available funds. Thus, the volume of sub-$15 workers will be reduced and automation, layoffs, relocations, or outright closures will take place.
You're very wrong. Prices will absolutely go up and they will go up much farther than the increase in pay will afford. Prices will rise because cost of production rises. This will be a small rise on every product and service. It will be a reduction in superfluous employment, and it won't be some skyrocketing price gap that the economy couldn't bear, but it will be an across the board incremental increase.
You make 50 extra bucks this week! Hooray! But your food bill is 10 dollars more. Your electricity is 10 more. Your gas is 10 more. Your clothes are 10 more. Your rent is 10 more. That new xbox game is 10 more. Oh you want to go out to dinner or a movie? 10 more. Because all of those services have to pay their employees more as well.
But that's not all folks! Don't forget the people above minimum wage who don't get a hike in pay, effectively devaluing their jobs as well! Oh I'm sorry you are a skilled laborer who's dedicated time and effort and money into becoming an above min wage worker, just be glad the idiots at taco bell get more money!
But none of that is the worst part. The worst part is the increase of outsourcing which is already a major issue. We won't make ANYTHING here anymore. We won't have to worry about minimum wage because most minimum wage jobs will be replaced by automation because NOW after an artificial hike to 15 it actually makes financial sense
You're very wrong. Prices will absolutely go up and they will go up much farther than the increase in pay will afford. Prices will rise because cost of production rises. This will be a small rise on every product and service. It will be a reduction in superfluous employment, and it won't be some skyrocketing price gap that the economy couldn't bear, but it will be an across the board incremental increase.
You make 50 extra bucks this week! Hooray!
But your food bill is 10 dollars more. Your electricity is 10 more. Your gas is 10 more. Your clothes are 10 more. Your rent is 10 more. That new xbox game is 10 more. Oh you want to go out to dinner or a movie? 10 more. Because all of those services have to pay their employees more as well.
But that's not all folks! Don't forget the people above minimum wage who don't get a hike in pay, effectively devaluing their jobs as well! Oh I'm sorry you are a skilled laborer who's dedicated time and effort and money into becoming an above min wage worker, just be glad the idiots at taco bell get more money!
But none of that is the worst part. The worst part is the increase of outsourcing which is already a major issue. We won't make ANYTHING here anymore. We won't have to worry about minimum wage because most minimum wage jobs will be replaced by automation because NOW after an artificial hike to 15 it actually makes financial sense
You might want to read a book on economics. Prices went up last year without a wage increase because the money supply increased drastically basically overnight as 2 trillion dollars dumped into the economy. This was the result of a flush of dollars.
Unemployment rose during that period due mostly to lockdowns, but also due to increased costs of capital goods thanks to the increased volume of dollars chasing the same number of goods.
The wage increase will have a direct effect of more unemployment, just as Obamacare did, because the cost of having employees will rise for certain lower wage sectors.
If they use the “stimulus bill” to back door the wage increase, it will appear that the price of goods increases due to the wage increase, but it’s a false indicator, and even a smokescreen/black box. By adding a hundred factors at once, they make it difficult to distinguish what is causing which effect. This is why they love massive spending bills - to spread the blame around evenly and make forensic economics more difficult and take years to unravel what happened.
In the end, the wage increases are retarded. The market is bearing the weight as it can, and manipulations have negative effects, key of which will be unemployment which will be followed by more government spending and increasing the money supply, causing more inflation.
The answer is to shut down the government entirely, stop all handouts, especially corporate welfare, audit the Federal Reserve, and then shut it down, going back to some sort of hard currency based on weights as worked for millennia rather than arbitrary fiat money.
You might want to read a book on economics. Prices went up last year without a wage increase because the money supply increased drastically basically overnight as 2 trillion dollars dumped into the economy. This was the result of a flush of dollars.
Unemployment rose during that period due mostly to lockdowns, but also due to increased costs of capital goods thanks to the increased volume of dollars chasing the same number of goods.
The wage increase will have a direct effect of more unemployment, just as Obamacare did, because the cost of having employees will rise for certain lower wage sectors.
If they use the “stimulus bill” to back door the wage increase, it will appear that the price of goods increases due to the wage increase, but it’s a false indicator, and even a smokescreen/black box. By adding a hundred factors at once, they make it difficult to distinguish what is causing which effect. This is why they love massive spending bills - to spread the blame around evenly and make forensic economics more difficult and take years to unravel what happened.
In the end, the wage increases are retarded. The market is bearing the weight as it can, and manipulations have negative effects, key of which will be unemployment which will be followed by more government spending and increasing the money supply, causing more inflation.
The answer is to shut down the government entirely, stop all handouts, especially corporate welfare, audit the Federal Reserve, and then shut it down, going back to some sort of hard currency based on weights as worked for millennia rather than arbitrary fiat money.
I am economics in action I own several businesses and have been doing this for decades. And nobody said anything about wages being the only reason prices increase. Thats a strawman argument. Wage increases WILL raise prices. You can't get rid of all the employees so inevitably your costs will increase which means your already slim margins will decrease and you will be forced to raise prices accordingly. This is BASIC economics bud. Jist because one thing does something doesn't mean it negates other factors that's just stupid.
I am economics in action I own several businesses and have been doing this for decades. And nobody said anything about wages being the only reason prices increase. Thats a strawman argument. Wage increases WILL raise prices. You can't get rid of all the employees so inevitably your costs will increase which means your already slim margins will decrease and you will be forced to raise prices accordingly. This is BASIC economics bud. Jist because one thing does something doesn't mean it negates other factors that's just stupid.
Half way true. You'll still see price increases, guaranteed.
Go to any McDonald's in an area with increased minimum wage. Sure, you will see the kiosks but those are pretty standard these days regardless of area. You will also see a higher price for menu items.
You can also compare rent in pre/post wage hike. There will be a difference there as well.
Businesses won't just automate and add costs to on top of higher costs to eventually save. They will want a way to offset the cost of automation as well. Therefore they raise costs to cover the costs to save money. It turns a double negative into a double positive.
Half way true. You'll still see price increases, guaranteed.
Go to any McDonald's in an area with increased minimum wage. Sure, you will see the kiosks but those are pretty standard these days regardless of area. You will also see a higher price for menu items.
You can also compare rent in pre/post wage hike. There will be a difference there as well.
Businesses won't just automate and add costs to on top of higher costs to eventually save. They will want a way to offset the cost of automation as well. Therefore they raise costs to cover the costs to save money. It turns a double negative into a double positive.
That’s an indirect effect, not a direct effect. Prices are an indicator of what the market will bear.
This is why McDonald’s cheeseburgers are around $1.50 in many markets in the US while Big Macs are roughly $4. If McDonald’s could get away with charging $3 for the regular cheeseburger and $6 for the Big Mac they would, but they understand the volume would drop significantly if they did.
The reason wages, which are simply a price, go up “organically,” is for two main reasons - scarcity of appropriate workforce or abundance of dollars. Artificially raising the “price” of wages contrary to these natural market forces and indicators doesn’t increase the volume of dollars in circulation pursuing other goods. The net effect will ultimately be the same volume of consumer purchasing power in the economy as companies lay off their sub-$15 workers to maintain their margins, as the market won’t support price increases, especially in light of increased unemployment.
What happens in these cases, is usually some sort of Keynesian government currency manipulation program to “pump more money into the economy.” These take the form of government make work projects such as in the New Deal, increased welfare, “stimulus” packages and even just straight up market tinkering through government contracts or “tax credits” (disguised corporate welfare) to large corporations. As more money is pumped into the system, inflation occurs and prices rise as more dollars enter the marketplace.
That’s an indirect effect, not a direct effect. Prices are an indicator of what the market will bear.
This is why McDonald’s cheeseburgers are around $1.50 in many markets in the US while Big Macs are roughly $4. If McDonald’s could get away with charging $3 for the regular cheeseburger and $6 for the Big Mac they would, but they understand the volume would drop significantly if they did.
The reason wages, which are simply a price, go up “organically,” is for two main reasons - scarcity of appropriate workforce or abundance of dollars. Artificially raising the “price” of wages contrary to these natural market forces and indicators doesn’t increase the volume of dollars in circulation pursuing other goods. The net effect will ultimately be the same volume of consumer purchasing power in the economy as companies lay off their sub-$15 workers to maintain their margins, as the market won’t support price increases, especially in light of increased unemployment.
What happens in these cases, is usually some sort of Keynesian government currency manipulation program to “pump more money into the economy.” These take the form of government make work projects such as in the New Deal, increased welfare, “stimulus” packages and even just straight up market tinkering through government contracts or “tax credits” (disguised corporate welfare) to large corporations. As more money is pumped into the system, inflation occurs and prices rise as more dollars enter the marketplace.
Pretty much sums up the United States as a whole these days.
Pretty much sums up the United States as a whole these days.
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