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Okay, maybe I explained it badly. You said that there's always a cushion. Which would still be true after you raise wages. So you can repeat and repeat and you'
by Sebb767 4y ago
Okay, maybe I explained it badly. You said that there's always a cushion. Which would still be true after you raise wages. So you can repeat and repeat and you'll end up with infinite wage for 1$ spent. This quite obviously doesn't work, so the point can't be true. Therefore, we can't deduce the existence or the size of a cushion just by the fact that a product is being sold.
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I still agree with your general point; in a lot of industries, there's a lot of cushion right now. But there are also companies operating on razor thin margins (especially when competing with cheap labor overseas). At some point, companies will either raise the price (if they can get away with charging more) or shelf the product. They might also do so if they think the margin is to small; they usually don't create stuff for net zero just to keep employees happy. We simply can't deduce from a general argument how close they are to taking either measure.