I think it’s kind of a misunderstanding that this is how it works. Increasing wages can save companies money by improved productivity and reduced turnover. More

I think it’s kind of a misunderstanding that this is how it works. Increasing wages can save companies money by improved productivity and reduced turnover. Moreover the price of the product is dictated by market demands and owners may simply have to take less profit in order to sell at market price. That is of course if increased productivity doesn’t completely cancel out the wage increase. Finally higher wages means people can afford higher prices to some extent.