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I think your post is a clear example of why people seem to rage completely inappropriately. I'm sure your example was rhetorical, but do you realize how rhetori
by TangoTrotFox 8y ago
I think your post is a clear example of why people seem to rage completely inappropriately. I'm sure your example was rhetorical, but do you realize how rhetorical it was? People seem to vastly overestimate how much companies make per item. Amazon's profit margin is currently at record breaking levels -- of 4.79%. It historically averages around 2%. That means on e.g. $300 of product (as a game console costs), they would show an average profit of $6-$14. They need to move hundreds of thousands of dollars of product to pay the yearly salary for a single blue-collar worker. A box mover is making nowhere near his monthly compensation for moving a couple of XBoxes, even we ignore the vast number of other expenses that go into the process and pretend that 100% of the profit from those boxes can go straight to him.
As for minimum wage, businesses aren't identical -- even when they are. For instance a McDonald's franchise in one area of a mostly homogenous part of town can end up having a substantially different overall performance than one in a different area in our mostly homogenous town. There's a large number of variables that can be difficult to account for. And of course reality is different businesses operating in different areas in heterogeneous towns. So you don't eliminate all jobs of a given wage level - you just reduce the demand for them by removing all companies that can't afford to pay those wages.