Why raising the min wage proved to be a very bad thing.

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[–]scornedandsedated 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (4 children)

As wages increase, companies compenate by increasing product cost. It is the simplest equation.

Who suffers? People earning Minimum wage. Necessities become more expensive. People who are wealthy don't care if their grocery budget increases by 20%.

These stupid crusaders who believe that some day everyone will make a "living wage" have brain damage. They aren't 'finally getting corporate US to return wealth', they are forxing corporate US to replace them with kiosks and AI.

[–]Canbot[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

As wages increase, companies compenate by increasing product cost.

That is a factor but you have to be realistic about how big of a factor it is. No one decides the prices they set off of labor costs. They factor in ALL costs of doing buisness and labor is only a portion of that and often a tiny portion.

A much bigger factor is the cost of materials. When currency is devalued all the costs go up.

[–]scornedandsedated 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

the cost of materials. When currency is devalued all the costs go up.

Also true.

[–]MaiqTheTrue 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

Materials are farmed, made and shipped by people, all of whom demanded more money.

[–]Canbot[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Yes, and most of that is overseas.