Originally Posted By: eljefino
Originally Posted By: gofast182
So what happens to McDonald's Dollar Menu after this? You think there's enough margin in $1.00 cheeseburgers to support paying everyone so much for no added value to the company? Not a chance. So, Dumb and Dumber, shut the [censored] up and flip your burgers or go out and take an economics class, I don't want to have to pay more for your ignorance.
I'd start with macroeconomics to see where that money goes...
If entry level wages double then there's a lot more money floating around in the economy on "what poor people buy" and the costs will go up where there's labor involved. So the price of a trinket at walmart will go up to reflect the longshoremen, truck driver, and cashier on US soil but not the raw materials or chinese guy putting it together.
That dollar cheeseburger could easily cost $2 but the market will be there, break even.
But rents won't double. They'll go up "some" as roommates split up and try for their own places. Section 8 types will complain that now they can't find affordable housing on their stipend. But then we're collecting taxes on $16/hr and that's a higher bracket so it's more than 2x as much money.
I mention this not as sparring material but as the rule of unintended consequences. Disparities in wealth of the magnitude we see today rarely end well; we can shave off the top or bring up the bottom. I can understand not seeing past one's ledger book but if the money there is is sprinkled around more evenly I see mostly good things happening.
Also, it seems like about the peak of the economic cycle when FINALLY people get the stones to demand better wages. Seems like the cost of oil and everything else goes up but not wages... stagflation.
I see what you're trying to do here and there's some point to it but this stuff doesn't happen in a vacuum as it would need to for that to be the case. You can't assume that the businesses this would affect just have the money laying around to pay all of these people so much more, it has to come from somewhere, they have to earn it first. Most businesses don't run margins so high they can just soak that up. So they raise prices and you think they'll sell the same amount of goods and services? The people who didn't see such a massive wage increase may no longer be able to afford the same goods and services. You might have been better served by paying more attention to the first 3/4 of my anecdote.
Originally Posted By: gofast182
So what happens to McDonald's Dollar Menu after this? You think there's enough margin in $1.00 cheeseburgers to support paying everyone so much for no added value to the company? Not a chance. So, Dumb and Dumber, shut the [censored] up and flip your burgers or go out and take an economics class, I don't want to have to pay more for your ignorance.
I'd start with macroeconomics to see where that money goes...
If entry level wages double then there's a lot more money floating around in the economy on "what poor people buy" and the costs will go up where there's labor involved. So the price of a trinket at walmart will go up to reflect the longshoremen, truck driver, and cashier on US soil but not the raw materials or chinese guy putting it together.
That dollar cheeseburger could easily cost $2 but the market will be there, break even.
But rents won't double. They'll go up "some" as roommates split up and try for their own places. Section 8 types will complain that now they can't find affordable housing on their stipend. But then we're collecting taxes on $16/hr and that's a higher bracket so it's more than 2x as much money.
I mention this not as sparring material but as the rule of unintended consequences. Disparities in wealth of the magnitude we see today rarely end well; we can shave off the top or bring up the bottom. I can understand not seeing past one's ledger book but if the money there is is sprinkled around more evenly I see mostly good things happening.
Also, it seems like about the peak of the economic cycle when FINALLY people get the stones to demand better wages. Seems like the cost of oil and everything else goes up but not wages... stagflation.
I see what you're trying to do here and there's some point to it but this stuff doesn't happen in a vacuum as it would need to for that to be the case. You can't assume that the businesses this would affect just have the money laying around to pay all of these people so much more, it has to come from somewhere, they have to earn it first. Most businesses don't run margins so high they can just soak that up. So they raise prices and you think they'll sell the same amount of goods and services? The people who didn't see such a massive wage increase may no longer be able to afford the same goods and services. You might have been better served by paying more attention to the first 3/4 of my anecdote.
