All businesses would do is raise prices to match it then drive the value of currency down compared to the rest of the world. Personally think it's not a good idea. Plus the fact workers won't increase productivity with a minimum increase. If they're lazy at $8 a hour, they'll be twice as lazy at $15.
Damn! That's rough but the truth.
Wrong. Economists you guys are not.
All businesses would do is raise prices to match it then drive the value of currency down compared to the rest of the world.
Personally think it's not a good idea. Plus the fact workers won't increase productivity with a minimum increase. If they're lazy at $8 a hour, they'll be twice as lazy at $15.
You first have to consider the inelasticity of prices. That is, businesses can't increase prices by as much as labor costs. Nor do they have to as consumer buying power increases (because of increasing wages), they can make more money due to increased volume and consumers shifting to more expensive and higher margin goods.
You are also conflating the money supply, consumer price changes and currency exchange rates.
Actually, productivity will increase. Higher labor costs force increases in productivity. Lazy people will be the first ones to have to shit (increase productivity) or get off the pot (go live with mama-dukes) due to increasing productivity, and more competition (since as the price of labor goes up, the number of workers willing to work goes up).
I guessed you'd be popping in here...
So...enlighten us as to how raising minimum wage to $15 for a part time job would solve any problems. We all know it would raise prices...because this is how the US economy works...
You first have to consider the inelasticity of prices. That is, businesses can't increase prices by as much as labor costs. Nor do they have to as consumer buying power increases (because of increasing wages), they can make more money due to increased volume and consumers shifting to more expensive and higher margin goods.
You are also conflating the money supply, consumer price changes and currency exchange rates.
Actually, productivity will increase. Higher labor costs force increases in productivity. Lazy people will be the first ones to have to shit (increase productivity) or get off the pot (go live with mama-dukes) due to increasing productivity, and more competition (since as the price of labor goes up, the number of workers willing to work goes up).
First off...LOL@ your idea that a minimum wage, part time employee will work harder for more $$...give me a fucking break. Even if employer demand goes up...it's still the league minimum and no matter who fills those shoes, the performance will be the same. Those with actual drive do not make minimum wage for long...they never do
Not if they want to decrease sales they won't. First, they will revaluate workflow and productivity. Second, they will cut the fat. Third, they will find other ways to decrease costs. Fourth, they will consider higher margin products and marketing. Then, they might raise prices.Second...if you do not think that companies will not hide behind that as a reason to raise their prices...you are rather foolish. In this economy, large companies use any reason they can to raise prices...and do it often.
Hoo boy, hitting all of the typical lib talking points. The pay increase will have a positive effect for a very short time, as the market will readjust itself (inflation) and then we'll be right back in the same place, with the only final outcome a devalued dollar.
This doesn't hold water. If all jobs start at $15 an hour, who will be fighting for them?
Define drive.
I know lots of hard working people working shitty job for near minimum wage. Some of them have IQ's in the 60's.
By the way, if they have IQ's that low they qualify to be taken care of by the state via disability
Economic growth does not devalue the dollar. As if a "devalued" dollar is such a bad thing (unless you have a mattress full of cash or are a bankster).
lol @ thinking costs won't go up.
If I'm forced to pay a laborer $15 an hour - those costs are getting passed on to the client.
Define drive.
I know lots of hard working people working shitty job for near minimum wage. Some of them have IQ's in the 60's.
Higher prices, tons of layoffs. Market should set the wage.