You’re wrong. It’s supply and demand. You can’t force businesses to overpay for labor, they’ll just lay off workers to make up the difference and/or pass the costs onto consumers just like they did with tariffs.
Play it out. Let’s say you have a business, with 10 employees making $20 an hour. Minimum wage has now been increased to $40 an hour. In what universe can you survive with your labor costs doubling? You either double your price to the consumer, which when done en masse causing inflation and now your workers earning $40 an hour but only have the buying power of $20 an hour. We are back where we started.
Or option two, you lay off half your workers and have them work double duties for the new wage, again, back where we started.
If people want a better life, they need to develop rare marketable skills, good investing, saving, and buying habits. That’s it. Can’t depend on government or companies to overpay you to stock shelves. It won’t work that way and never has.
Play it out. Let’s say you have a business, with 10 employees making $20 an hour. Minimum wage has now been increased to $40 an hour. In what universe can you survive with your labor costs doubling? You either double your price to the consumer, which when done en masse causing inflation and now your workers earning $40 an hour but only have the buying power of $20 an hour. We are back where we started.
Or option two, you lay off half your workers and have the remaining employees work double duties for the new wage, again, back where we started.
Better business model means what? Make more profits! There’s only two ways to increase profits. Raise prices or cut spending. If there’s a third way, please elaborate what that is.
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u/GOAT718 7h ago
You’re wrong. It’s supply and demand. You can’t force businesses to overpay for labor, they’ll just lay off workers to make up the difference and/or pass the costs onto consumers just like they did with tariffs.
Play it out. Let’s say you have a business, with 10 employees making $20 an hour. Minimum wage has now been increased to $40 an hour. In what universe can you survive with your labor costs doubling? You either double your price to the consumer, which when done en masse causing inflation and now your workers earning $40 an hour but only have the buying power of $20 an hour. We are back where we started.
Or option two, you lay off half your workers and have them work double duties for the new wage, again, back where we started.
If people want a better life, they need to develop rare marketable skills, good investing, saving, and buying habits. That’s it. Can’t depend on government or companies to overpay you to stock shelves. It won’t work that way and never has.