5 ms·

It tells me we need a higher minimum wage. No individual can raise prices without losing competitiveness, but clearly higher prices would fix some of these seri

It tells me we need a higher minimum wage. No individual can raise prices without losing competitiveness, but clearly higher prices would fix some of these serious issues. A higher minimum wage would prevent the “they’ll just go next door” issue.

lotsofpulp 5y ago
It tells me the upper deciles of wealth have been enjoying life on account of the bottom deciles drawing shitty hand. Less entertainment, vacations, eating out for many who previously enjoyed it will be the result.
- vladvasiliu 5y ago
  You may be right. But then, the question becomes: what will become of these employees? Less eating out means less restaurant staff. But said staff are people who need to eat. Will they all go on social security? Maybe, maybe not. But it's a question we should ask, as a society.
vladvasiliu 5y ago
> No individual can raise prices without losing competitiveness, but clearly higher prices would fix some of these serious issues. A higher minimum wage would prevent the “they’ll just go next door” issue. That seems right on the face of it. But then there's another issue: are you sure that the same number of people would continue eating out? Personally, I wouldn't bet on it. I don't often eat out, mostly because it's not something I particularly enjoy, but also because I find it expensive for what it is. If the prices were to rise, I would eat out even less. I doubt I'm the only one thinking like this. It's not clear to me that raising the minimum wage, and therefore the price of a restaurant meal, would not have less people go out. And by less people I mean a drop high enough such that the sum of money spent eating out would drop. Which would mean there would be less restaurants which could afford to stay in business.
- heavyset_go 5y ago
  > It's not clear to me that raising the minimum wage, and therefore the price of a restaurant meal This study[1] specifically looks at the effect of raising the minimum wage on restaurant prices. What they found is that increases of 10% to the minimum wage are correlated with only a 0.36% increase of prices, and minimum wage increases may cause some prices to decrease, too: > Many business leaders fear that any increase in the minimum wage will be passed on to consumers through price increases thereby slowing spending and economic growth, but that may not be the case. New research shows that the pass-through effect on prices is fleeting and much smaller than previously thought. > By looking at changes in restaurant food pricing during the period of 1978–2015, MacDonald and Nilsson find that prices rose by just 0.36 percent for every 10 percent increase in the minimum wage, which is only about half the size reported in previous studies. They also observe that small minimum wage increases do not lead to higher prices and may actually reduce prices. Furthermore, it is also possible that small minimum wage increases could lead to increased employment in low-wage labor market. [1] https://www.upjohn.org/research-highlights/does-increasing-minimum-wage-lead-higher-prices https://www.upjohn.org/research-highlights/does-increasing-m...
  - DougN7 5y ago
    That seems pretty hard to believe to me. I suspect they didn’t take into account all the efficiency gains technology has enabled in that time period. Otherwise let’s just increase minimum wage by 100% if it will only raise prices by 3.6%.
- syshum 5y ago
  4 years ago I ate lunch out 5 days a week, and Dinner 2 pre Covid that dropped to 3 Lunches and 1 Dinner due to increasing prices... Post Covid I am down to 2 Lunches and Dinner ever other week... I am considering dropping to 1 lunch as lunches with tip are now climbing to $15-20 where 4 years ago I could easily get out of the door at most places for under $12 with tip for a lunch. if Lunches go above $20... I cease it completely
syshum 5y ago
you do understand how inflation works right? If all prices raise then the purchasing power of the person on Min Wage stays the same thus their situation did not actually improve any. Further Inflation has the common effect of hurting the lower and middle classes the worst and increasing wealth disparity. There is multiple ways this occurs but one thing that is trending of late is that as the wage floor is raising you are not seeing the same levels of raise in other area's of income until you get into the top 10% or higher of wage earners. Today we are seeing inflation outstrip wages in many skilled labor categories.

lotsofpulp 5y ago

It tells me the upper deciles of wealth have been enjoying life on account of the bottom deciles drawing shitty hand. Less entertainment, vacations, eating out for many who previously enjoyed it will be the result.

vladvasiliu 5y ago
You may be right. But then, the question becomes: what will become of these employees? Less eating out means less restaurant staff. But said staff are people who need to eat. Will they all go on social security? Maybe, maybe not. But it's a question we should ask, as a society.

vladvasiliu 5y ago

> No individual can raise prices without losing competitiveness, but clearly higher prices would fix some of these serious issues. A higher minimum wage would prevent the “they’ll just go next door” issue. That seems right on the face of it. But then there's another issue: are you sure that the same number of people would continue eating out? Personally, I wouldn't bet on it. I don't often eat out, mostly because it's not something I particularly enjoy, but also because I find it expensive for what it is. If the prices were to rise, I would eat out even less. I doubt I'm the only one thinking like this. It's not clear to me that raising the minimum wage, and therefore the price of a restaurant meal, would not have less people go out. And by less people I mean a drop high enough such that the sum of money spent eating out would drop. Which would mean there would be less restaurants which could afford to stay in business.

heavyset_go 5y ago
> It's not clear to me that raising the minimum wage, and therefore the price of a restaurant meal This study[1] specifically looks at the effect of raising the minimum wage on restaurant prices. What they found is that increases of 10% to the minimum wage are correlated with only a 0.36% increase of prices, and minimum wage increases may cause some prices to decrease, too: > Many business leaders fear that any increase in the minimum wage will be passed on to consumers through price increases thereby slowing spending and economic growth, but that may not be the case. New research shows that the pass-through effect on prices is fleeting and much smaller than previously thought. > By looking at changes in restaurant food pricing during the period of 1978–2015, MacDonald and Nilsson find that prices rose by just 0.36 percent for every 10 percent increase in the minimum wage, which is only about half the size reported in previous studies. They also observe that small minimum wage increases do not lead to higher prices and may actually reduce prices. Furthermore, it is also possible that small minimum wage increases could lead to increased employment in low-wage labor market. [1] https://www.upjohn.org/research-highlights/does-increasing-minimum-wage-lead-higher-prices https://www.upjohn.org/research-highlights/does-increasing-m...
- DougN7 5y ago
  That seems pretty hard to believe to me. I suspect they didn’t take into account all the efficiency gains technology has enabled in that time period. Otherwise let’s just increase minimum wage by 100% if it will only raise prices by 3.6%.
syshum 5y ago
4 years ago I ate lunch out 5 days a week, and Dinner 2 pre Covid that dropped to 3 Lunches and 1 Dinner due to increasing prices... Post Covid I am down to 2 Lunches and Dinner ever other week... I am considering dropping to 1 lunch as lunches with tip are now climbing to $15-20 where 4 years ago I could easily get out of the door at most places for under $12 with tip for a lunch. if Lunches go above $20... I cease it completely

syshum 5y ago

you do understand how inflation works right? If all prices raise then the purchasing power of the person on Min Wage stays the same thus their situation did not actually improve any. Further Inflation has the common effect of hurting the lower and middle classes the worst and increasing wealth disparity. There is multiple ways this occurs but one thing that is trending of late is that as the wage floor is raising you are not seeing the same levels of raise in other area's of income until you get into the top 10% or higher of wage earners. Today we are seeing inflation outstrip wages in many skilled labor categories.