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