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> In what world does it make sense to pay your workers $20k (or whatever), so they can spend $20k on products that your company makes? A world where you're rai

by kps 4y ago

> In what world does it make sense to pay your workers $20k (or whatever), so they can spend $20k on products that your company makes? A world where you're raising the floor so that everyone else's workers can also spend on the products your company makes.

gruez 4y ago
...except that won't happen because supply/demand drives prices, not the inflated wages that you're paying. Your competitors will continue to pay their workers the usual wages, and laugh all the way to the bank with the extra money that they're not spending on wages, or undercut your prices.
- kennywinker 4y ago
  Supply and demand also applies to the labour market. If you pay more, the best people want to work for you and you can hire the best people. Humans are not fungible, no matter how much businesses try to treat them that way.
  - gruez 4y ago
    >Supply and demand also applies to the labour market Right, but for wages (ie. prices) to go up, you need to decrease supply or increase demand. Increasing the prices you pay doesn't do that.
    - kennywinker 4y ago
      Supply and demand can "solve" for the price for an HD TV. It can't solve the problem of "do I need an HD TV or a 4K TV?".