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

submitted by Canbot from files.catbox.moe

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[–]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.