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Higher minimum wage, IMHO, leads to a zero sum game. Wages increase, then prices increase, returning us right back to where we started. Businesses are not goin
by Overtonwindow 9y ago
Higher minimum wage, IMHO, leads to a zero sum game. Wages increase, then prices increase, returning us right back to where we started. Businesses are not going to give up profit, and I think it's basic Econ 101 that if your fixed costs rise, you increase prices, or you shut down. The minimum wage in Sydney, Australia is $17.70 per hour. This has led to an increase in everything - from food to apartments. Sure you're making $17.70 an hour, but that apartment that was previously 1,000 a month is now $2,000, so you've really gained nothing.
- AstralStorm 9y agoAny real data to back all these assertions up? Say, a price/minimum wage chart? One Subway does not a correlation make. Neither does a price hike that can be caused by a myriad of causes not necessarily related to minimum wage.
- donatj 9y agoIf you compare minimum wage hikes to inflation you can see they're very closely linked – to the point that a minimum wage hike only ever results in very short buying power increases.