Without a way too keep them from just raising costs to match, raising min wage has a limited effect. Taxes on profit are more effective. Reinvestment or raises should be deductable, tax the everliving fuck out of gross profit for the rest.
The area I lived in voted for a minimum wage increase several years ago. Tons of people were saying that it was a bad idea, because the businesses would just raise prices on everything.
I think this is because minimum wage increases don’t happen in a vacuum. There are other things to consider. If your company raises prices, I’m going to go to a competitor who doesn’t. The idea that “they’ll just raise prices” assumes that all businesses will react to a minimum wage increase in the same way, and that’s not the case.
Perhaps I was being overly cynical but last years grocery hike was all of those businesses acting in concert. Which I’m sure is illegal for everyone but the rich…
Fucking raise the minimum wage. The problem is that prices are rising but wages are remaining stagnant.
Minimum wage should have been tied automatically to inflation rates. Even if it gets increased, 30 years from now we’ll be in the exact same boat.
Solid take.
Now, if they’d be honest about inflation rates…
Yeah, the actual calculation still needs to be done right, but having it as an ‘automated’ process will help reduce this sort of bullshit:
Agreed.
I wonder what happened in the 80s.
Without a way too keep them from just raising costs to match, raising min wage has a limited effect. Taxes on profit are more effective. Reinvestment or raises should be deductable, tax the everliving fuck out of gross profit for the rest.
The area I lived in voted for a minimum wage increase several years ago. Tons of people were saying that it was a bad idea, because the businesses would just raise prices on everything.
Minimum wage increase passed. Prices didn’t change.
I think this is because minimum wage increases don’t happen in a vacuum. There are other things to consider. If your company raises prices, I’m going to go to a competitor who doesn’t. The idea that “they’ll just raise prices” assumes that all businesses will react to a minimum wage increase in the same way, and that’s not the case.
Perhaps I was being overly cynical but last years grocery hike was all of those businesses acting in concert. Which I’m sure is illegal for everyone but the rich…