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If I follow you maximum demand to buy labor is at $0/hr. But if don't pay labor, no one is going to buy your product at the end of the day. If you pay more for
by guerby 5y ago
If I follow you maximum demand to buy labor is at $0/hr.
But if don't pay labor, no one is going to buy your product at the end of the day. If you pay more for labour, that's more money to spend on product and services.
There's an optimum somewhere between the two.
Presenting only one side is a polical statement.
- Ekaros 5y agoAlways makes me wonder when people say that about jobs in service and food sector. Isn't those people exactly the ones that spend largest part of their income on those services? So if they earned more they would be first one to spend more... And labour isn't that high percentage of costs anyway...
- lotsofpulp 5y agoLabor is the highest percentage of costs in service industries. Hence the incentive to keep labor costs down.