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> If labor costs go up equally then a business isn't at a competitive disadvantage The classic low wage job is flipping burgers. Everyone with a kitchen is a c

> If labor costs go up equally then a business isn't at a competitive disadvantage The classic low wage job is flipping burgers. Everyone with a kitchen is a competitor to this business, and if restaurants all raise prices in lock step, it stands to reason at least some people will cook at home instead. > if a business isn't creating jobs that provide a living wage then it shouldn't be allowed to exist ... I don't want to subsidize a business so that it can avoid paying its employees. I doubt you meant it this way, but that's a fascinating argument against progressive taxation.

jmward01 2y ago
> The classic low wage job is flipping burgers. Everyone with a kitchen is a competitor to this business, and if restaurants all raise prices in lock step, it stands to reason at least some people will cook at home instead. And meanwhile there will be more people with more money in their pockets able to now go out and get a meal somewhere. The secondary effects are many and you can't isolate price increase without looking at the new demand created. It may seem odd, but when you pay people more they end up spending more. [1] Additionally, part of the problem here is the perception that 'The classic low wage job is flipping burgers.' with the implication that that is just for high school kids so not a real job. Unfortunately this whole country runs on gig and minimum wage jobs (or worse). Enabling these jobs is just a route to funneling money up and increasing the wealth gap. People are doing an honest day's work and should be paid enough to live on that. Any argument to short-change them is an argument that society has to pick up for the slack of the employer. Are you suggesting we increase taxes to pay for that gap? Because that is what actually happens. So, why not. But instead of taxing me for a bad employment model, let's instead put a huge wealth tax on businesses that pay less than a minimum wage and then use it to pay for all the social programs that are needed to keep that workforce alive. I don't personally like that idea but at least then the costs of cheap labor would be put onto the places abusing it and not me. [1] https://cepr.org/voxeu/columns/spending-income-and-debt-responses-minimum-wage-hikes https://cepr.org/voxeu/columns/spending-income-and-debt-resp...

jmward01 2y ago

> The classic low wage job is flipping burgers. Everyone with a kitchen is a competitor to this business, and if restaurants all raise prices in lock step, it stands to reason at least some people will cook at home instead. And meanwhile there will be more people with more money in their pockets able to now go out and get a meal somewhere. The secondary effects are many and you can't isolate price increase without looking at the new demand created. It may seem odd, but when you pay people more they end up spending more. [1] Additionally, part of the problem here is the perception that 'The classic low wage job is flipping burgers.' with the implication that that is just for high school kids so not a real job. Unfortunately this whole country runs on gig and minimum wage jobs (or worse). Enabling these jobs is just a route to funneling money up and increasing the wealth gap. People are doing an honest day's work and should be paid enough to live on that. Any argument to short-change them is an argument that society has to pick up for the slack of the employer. Are you suggesting we increase taxes to pay for that gap? Because that is what actually happens. So, why not. But instead of taxing me for a bad employment model, let's instead put a huge wealth tax on businesses that pay less than a minimum wage and then use it to pay for all the social programs that are needed to keep that workforce alive. I don't personally like that idea but at least then the costs of cheap labor would be put onto the places abusing it and not me. [1] https://cepr.org/voxeu/columns/spending-income-and-debt-responses-minimum-wage-hikes https://cepr.org/voxeu/columns/spending-income-and-debt-resp...