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  1. #301
    Quote Originally Posted by xsublymonalx View Post
    How ingenious. So the average price of goods can increase again?
    Do you not understand how an economy works?
    Yeah, we had this thread a couple weeks ago.

  2. #302
    Quote Originally Posted by Daelak View Post
    What do you mean again? Food prices are set on the global marketplace. You increase the wages of your citizens so they have an edge on pricing, like Germany.
    Lol, no, they aren't. When you increase minimum wage, the price of goods also increases. Whether that be food, electronics, medicine, whatever. Companies will obviously be wanting to get more money because "you can pay more". However, people on salary(paid by the year) don't get raises when minimum wage increases, so they simply have to pay more for goods without getting an increase in salary. So they have less money to actually contribute to the economy. It's a simple domino effect.
    There are good people in every corner of the planet. Unfortunately, the Earth is round.

  3. #303
    Quote Originally Posted by Purlina View Post
    The relative purchasing power of the working poor would increase.

    It's not like your raising EVERYONE'S wage.
    Not if they're unemployed (which more would be).

    http://www.marketplace.org/topics/we...wage-hurt-poor

    Unskilled labor gets paid exactly what they're worth.

  4. #304
    The Undying Wildtree's Avatar
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    Quote Originally Posted by xsublymonalx View Post
    How ingenious. So the average price of goods can increase again?
    Do you not understand how an economy works?
    Except...... More spending power = increase of sales = product prices stay since more items are sold.
    Just a wild example..
    If you sell windows. You sell 100 windows a month. You ask 500 dollar per window, at the current situation.
    Now income goes up. People spending more. More people buy windows. All of a sudden you can sell 600 windows.
    You can keep your price at 500 because you sell more to make up for the higher wages you have to pay, and the more work that needs to be done, plus you have a slight profit left from the 100 windows. Overall everyone wins. Everyone has more money or goods.

  5. #305
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    Quote Originally Posted by xsublymonalx View Post
    Lol, no, they aren't. When you increase minimum wage, the price of goods also increases. Whether that be food, electronics, medicine, whatever. Companies will obviously be wanting to get more money because "you can pay more". However, people on salary(paid by the year) don't get raises when minimum wage increases, so they simply have to pay more for goods without getting an increase in salary. So they have less money to actually contribute to the economy. It's a simple domino effect.
    Oh so food ISN'T set on the global market? That's weird, I am going to have to see a source for that. Western European countries subsidize their workforce via welfare programs, strong union protections and specializations in order to keep ahead of global pricing, and to ensure that their main drivers of their economy, consumer products and housing, are kept free of disruption. See: living wage, German Union, retraining.
    Quote Originally Posted by zenkai View Post
    There is a problem, but I know just banning guns will fix the problem.

  6. #306
    Quote Originally Posted by Purlina View Post
    The relative purchasing power of the working poor would increase.

    It's not like your raising EVERYONE'S wage.
    Precisely. You're not raising everyone's wage. But because half of the population can pay more, why would companies not increase prices of goods to get more profit?
    There are good people in every corner of the planet. Unfortunately, the Earth is round.

  7. #307
    Quote Originally Posted by Rukentuts View Post
    Not if they're unemployed (which more would be).

    http://www.marketplace.org/topics/we...wage-hurt-poor

    Unskilled labor gets paid exactly what they're worth.
    Companies are always trying to find more ways to be more efficient anyway. It may accelerate the elimination of certain jobs, but that doesn't mean that those jobs wouldn't have been eliminated in due time...

  8. #308
    Quote Originally Posted by xsublymonalx View Post
    Precisely. You're not raising everyone's wage. But because half of the population can pay more, why would companies not increase prices of goods to get more profit?
    Or get the same profit margin % they have before, especially in places like Wal-Mart or fast food.

  9. #309
    Quote Originally Posted by Wildtree View Post
    Except...... More spending power = increase of sales = product prices stay since more items are sold.
    Just a wild example..
    If you sell windows. You sell 100 windows a month. You ask 500 dollar per window, at the current situation.
    Now income goes up. People spending more. More people buy windows. All of a sudden you can sell 600 windows.
    You can keep your price at 500 because you sell more to make up for the higher wages you have to pay, and the more work that needs to be done, plus you have a slight profit left from the 100 windows. Overall everyone wins. Everyone has more money or goods.
    Except that doesn't happen. If companies can increase cost and make more profit, then they're going to. Plain and simple. They do not care about how other people are doing, they only care about how much money they're making. And if they can make more, then they're going to.
    There are good people in every corner of the planet. Unfortunately, the Earth is round.

  10. #310
    Quote Originally Posted by Purlina View Post
    Companies are always trying to find more ways to be more efficient anyway. It may accelerate the elimination of certain jobs, but that doesn't mean that those jobs wouldn't have been eliminated in due time...
    Unemployment is a much bigger contributor to poverty than minimum wage.

  11. #311
    Quote Originally Posted by Rukentuts View Post
    Or get the same profit margin % they have before, especially in places like Wal-Mart or fast food.
    Yeah, but don't get me started on Wal-Mart. Some fucked up people controlling that place.
    There are good people in every corner of the planet. Unfortunately, the Earth is round.

  12. #312
    Quote Originally Posted by xsublymonalx View Post
    Precisely. You're not raising everyone's wage. But because half of the population can pay more, why would companies not increase prices of goods to get more profit?
    They would raise there prices somewhat, but the relative purchasing power of the poor would be somewhat higher. Look at the minimum wage back in the day, it used to be considered a living wage.

    If you make minimum wage now your part of the "working poor".

  13. #313
    The Undying Wildtree's Avatar
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    Quote Originally Posted by xsublymonalx View Post
    Precisely. You're not raising everyone's wage. But because half of the population can pay more, why would companies not increase prices of goods to get more profit?
    I explained it......
    And raising prices doesn't result in higher profits all the time. It can brutally backfire.
    Unless with certain markets where (illegal) price cartel is possible, most markets are so large that any business has to compete with a large number of other businesses. If you raise your prices and the others, or just a few others hold theirs, guess whose sales go up?

  14. #314
    Quote Originally Posted by xsublymonalx View Post
    Yeah, but don't get me started on Wal-Mart. Some fucked up people controlling that place.
    You have to drool at their mastery of the supply-chain though.

  15. #315
    Is this going to be one of those things where people argue about how they personally feel economies work against actual economic data? Sigh...

  16. #316
    Quote Originally Posted by Purlina View Post
    They would raise there prices somewhat, but the relative purchasing power of the poor would be somewhat higher. Look at the minimum wage back in the day, it used to be considered a living wage.

    If you make minimum wage now your part of the "working poor".
    No it won't. Not really. You can't live on your own on minimum wage in this economy or at this time. But you used to be able to.

    And even say you're right, that the "working poor" can buy slightly more things. That still doesn't change the fact that the price of goods increased and people on salary don't get raises and therefore have less money to spend.
    There are good people in every corner of the planet. Unfortunately, the Earth is round.

  17. #317
    Quote Originally Posted by Spectral View Post
    Is this going to be one of those things where people argue about how they personally feel economies work against actual economic data? Sigh...
    That's why I posted a song a page back. I feel it's more accurate than internet-warrior arguments.

    Let's all ride the Gish gallop.

  18. #318
    i think one of the main reasons of us not wanting republicans as boss is the following:
    republicans helped to spread the financial crisis of 2008 by letting the big banks go bankrupt.

    US debts in its nowadays high values stem from republicans. Reagan was the first, and than came the two bushs. Clinton in between hat positive households. Obama is trying to clear the mess,, the republican heir, bush left to him, with bankrupt banks, destroyed economy, lowered taxes for the rich, and 2 simultanous invasions which also cost extremley much.

    No sane government would have had the lehman brothers go bankrupt ever, no matter how much shit they did.
    But, the goldman sachs guys, one of those was the responsible minister back than, told bush to let lehmann go bankrupt
    When goldman sachs was about to follow the lehmann bankrupt, the government decided to safe goldman. Is that a coincidence?

  19. #319
    The Undying Wildtree's Avatar
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    Quote Originally Posted by xsublymonalx View Post
    Except that doesn't happen. If companies can increase cost and make more profit, then they're going to. Plain and simple. They do not care about how other people are doing, they only care about how much money they're making. And if they can make more, then they're going to.
    No, it is exactly how it goes. You really have to get away from your single business thinking. It's a huge market out there, and whereas it is absolutely true that every business is out to maximize their profits. The path to profit is determined by the market. The market is controlled by customer behavior.
    Customer behavior is 180% opposite to the business goal. Customer wants to spend as less as possible.
    Business knows that.
    Why you think Walmart became the worlds largest retailer? Not from high prices. From undercutting the competition..

  20. #320
    Quote Originally Posted by Rukentuts View Post
    You have to drool at their mastery of the supply-chain though.
    True that. If you're in it for profit alone, then Wal-Mart is an incredible role-model.
    There are good people in every corner of the planet. Unfortunately, the Earth is round.

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