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Economic nonsense... Police, Fire, Teachers etc have unions. Unions negotiate wages on cost of living. Minimum wages help determine cost of living, ergo raises for everyone. Higher wages higher prices yes. But when everyone has higher income everything is offset by money in the economy. Example: cost of living in NY LA or San Francisco is a lot higher than Cleveland Milwaukee or Jackson Mississippi. Wages are also higher in those cities. It balanced out. Money is like energy it's transferred not destroyed unless u have hoarders then its not in the economy. Firefighters police teachers etc make more money there and taxes aren't astronomical because of the money there balancing out cost of living. It's no different than a household budget. If you have $500 a month to spend on groceries you spend it. The person who needs to spend $500 but is only spending $300 can now afford $500. With your extra money you spend it on eating out or home improvements or clothes or a car note. Money that would have never went to anything but groceries owed effects other businesses. Nothing really changed but getting ahead of inflation. By your philosophy NYC and their 60,000 police force & 15,000 fire fighters & emits would decimate NYC yet its abt 15% of the budget...but i digress
This is the part that you miss. The minimum wage goes from $8 to $15; however, the cost of living in NY City is much higher than the rest of NY State. Please ignore the fact that NY City's minimum wage will be higher than upstate, because this is just an example and doesn't apply to every state in the country. What happens now? The person will migrate from the city to the suburbs because the cost of living is less.
Here's the other thing you miss... A person making $8 will now be making the same as someone who had previously made $7/hour more than minimum wage. The employee who made more won't get a raise, but will still have to deal with the rising prices and cost of living. Now there's millions of people like him who are below the poverty rate suddenly and may live off of government benefits and will pay from the lowest tax bracket (where they weren't before). This is how you ruin the economy.
In what world is that true?
Honestly I'm not sure if you are trolling this thread or simply had misinformed teachings in your youth.
...And anyone who runs a business knows the more u can sell actually means the prices wouldn't fluctuate tremendously.
I have owned two businesses in the past and currently manage another two that grossed 7+ million combined last year. Employee costs as a percentage are the highest expense every year. The more we sell of our services and products, the more competitive we may be, but pricing will ultimately be determined from gross sales minus our expenses so that something is left over. If any part of our 'cost to do business' increases, we will raise our pricing to pay for it.
McDonalds indeed is affected by the labor increase and THIS is how they are reacting to it.
If any business fails due to 'product or capital'?, then what good is that higher minimum wage to all the employees that are now out of a job?
...And sure things might go sideways at first but that's with any change.
So after everything settles back to 'norm' and housing, food, transportation and the myriad of things we spend our money on have all adjusted to the artificially-driven higher cost of labor. Who ends up with more than what they have now?
As I said earlier in this post, you might want to think about the 'real' winners in all of this and it ain't gonna be us.
So riddle me this batman. Why consumer spending the number one reason politians sight when it comes to tax breaks? Because it's spurs the economy. What is the number one thing that wage increases accomplish? Consumer spending. The only difference is some people know how to adapt and some don't. Same ppl who ruin their personal credit can ruin a business on philosophy alone. If your business can't sustain the number of workers lay them off. Workers you have are more willing to put in extra because of extra pay. Economic fact... Laid off workers can find jobs.. While ur business may not support the work force the thriving businesses will. Again that's an economic fact. To think that cutting taxes of 1000 a year vs 1000's in salary is asinine. Answer me this why are most apartment/housing coops successful? Why is REI a $2B company? Why do most credit unions thrive? Why do grocery coops and farm coops produce 4 jobs outside of their company?
Spending money from tax cuts isn't the same as spending money from raising the minimum wage.
Tax cuts allow spending that doesn't require employers to pay their employees more money. At the same time, companies also benefit from the increased consumer spending and the fact that the company is paying a smaller percentage of their profits to the government than they were before. Employees are simply taking home more of their earned wages and giving less to the government.
With forced pay raises, employers are forced to take money out of their revenue to pay for their employee's increased wages while giving more to the government at the same time. The prices of everything goes up, negating the whole idea of increased spending because companies will have to pay more for everything else anyways.
I have no idea what economics teacher taught your high school class, but they should be fired.
Batman comment gets you a kudo!
....I think I look quite dashing in a cape
But mountaindewvoltage said it right, allowing people to keep the money that they've already earned is completely different than mandating that they should earn more.
The first example releases money back into the system, the other just makes the system more expensive to live in.
Remember every dollar that passes out of our hands into another is taxed as a percentage . If magically I could make that thing you purchased cost 50% more... knowing that I would get a fixed percentage of the exchange then boy howdy yes I'd def want that quarter pounder with cheese to cost $7.50 rather than $5.00.
You're being duped if you believe otherwise.
Let's agree to disagree then.
Your feelings about this matter are obviously strong... as are mine. Maybe in a couple years we'll revisit the matter and compare perceptions again.