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> So instead of funneling money up the corporate hierarchy towards off shore accounts, a second house for the CEO, or whatever, funneling money back into the ec
by minton 8y ago
> So instead of funneling money up the corporate hierarchy towards off shore accounts, a second house for the CEO, or whatever, funneling money back into the economy
I assume the CEO isn’t willing to generously give up their second house and will find a way to push this cost onto all consumers including those happily earning higher wages.
Is there a mechanism in place to prevent this?
- zachsnow 8y agoThe same mechanism that ensures that the local coffee shop isn’t charging so much that the owner has a second house in Bermuda — if you raise prices that much you won’t be competitive. Obviously in an particular case, who knows? But in general I think the expectation is that the market will decide.
- skidd0 8y agoA minimum wage isn't one coffee shop with expensive beans. It means Every shop has expensive beans.
- romed 8y agoMinimum wage raises in America generally come out of the landlord's pocket, not the consumer's.
- chrisdhoover 8y agoI’m not sure what your statement means. Can you explain what you mean?
- romed 8y agoLandlords have wide pricing power. They basically get all of the money. Rents rise until merchants make minimal margins. If the law says that wages have to go up, that depresses margins and therefore rents.
- boomboomsubban 8y ago>will find a way to push this cost onto all consumers including those happily earning higher wages I never understand this argument. Those happily earning higher wages are already planning on spending most of those wages. The resulting increase in sales should already cover much of this cost, price increases aren't the only way to generate more revenue.