Also, you can start playing the stock market with very little initial investment. Heck, everyone should at least be paying in to a mutual fund every month. My $50 a month basically buys me financial security. And you'd be surprised at the growth rate of low-risk investments.
in your fail economic theory if it is only the demand side that sets the price then the demand side could set the price cheaper then what it could be produced at and no business can survive selling its product cheaper then what it can be produced at
---------- Post added 2013-02-13 at 07:23 PM ----------
If McDonalds started charging $30 for a Big Mac tomorrow, their sales would plummet, because they can't charge that much, the market won't accept it.
Yes, the market puts the price on some things at below cost. What this means is that the company fails. Because their product isn't worth what it costs to produce. That's how the system works.
If it was taken from one and given to another it isn't growth it is redistribution
If i take 10 dollars from a store owner and give it to a customer to spend in his store did the owner make any money?
That's not a huge change. It works out to making about 9 grand less a year. If that's the margin between success and failure for his shop, he was on the edge of collapse anyway.
Those making min. wage are not the vast majority of the work force. Maybe 1%? maybe?In order to increase aggregate demand is to ensure the vast majority of the workforce has disposable income..
The thing that I think is the problem is that the GoP advocating for less spunding and less government just kind of gloss over the fact that when corporations pay their employees $7 an hour it's the government that is paying the other half of the employees livlihoods. (foodstamps/healthcare/HEAP ect) It's tough living on minimum wage for a family with that government aid. But without it, it would be impossible and the pressure on corporations to pay more would be enormous. Yet, making them pay more with a minimum wage doesn't help either.
The issue there is corporations have limitless nobs they can turn to react and circumvent actions taken by the government that try to stymie their singular focus of screwing over the average American employee. (in this case, they would simply raise the cost of all their products to pass the cost onto consumers, they would never absorb the loss themselves to better the lives of those helping to make them successful) There really isn't anything any of us can do to stop them now.
Try to raise the minimum wage, they raise prices. Try to make them insure their employees, they adopt a stance of only hiring veterans with cheaper Tricare to both dodge a bullet as well as championing a false banner of patrotism. Try to make a regulation to stop abuse and they call in favors with politicans on their campaign donation teat to make favorable changes or introduce loop holes to exploit. Job offers shitty pay, just go elsewhere! Except for that "we here at XYZ corp offer a competitive wage" roughly translates into we pay the same shitty wage as everyone else. There's no where to go when all get on board the same game plan.They now hold all the cards and there is nothing more we can do but bend over and take it.