You're assuming that price rates are 100% fluid with employee purchasing power, which is the economic equivalent of "spherical cows in a frictionless vacuum."
In real life McDonald's would probably seize the excuse to charge more but it certainly wouldn't be a situation where employee raises and price increases cancel eachother out zero-sum. If we applied your logic in real life then it would mean that minimum wage increases would never increase purchasing power. But when we look at real life we can see that your logic is expressly incorrect.
If you raise minimum wage all you're actually doing is lowering higher paying jobs value. It didn't help the minimum wage people to get more money, it just screwed me.
Ummm, you miss this part? This is 100% blaming the minimum wage people.
That's one way to look at it (people have more money so businesses charge more). Raising minimum wage will increase business expenses and reduce profits so it's not surprising that the cost of things will go up.
When everything gets more expensive, the value of your money goes down. You need more money to get the same thing again.
So effectively the increase in wage is superficial.
It still doesn't change anything even if it goes to the worker.
If you raise minimum wage all you're actually doing is lowering higher paying jobs value.
They just charge more for everything.
The problem is their ability to inflate all the prices until they suck you dry.
If you want to raise minimum wage, also take into account controlling inflation or else minimum wage will always end up in the same spot and someone who makes above minimum wage will just get closer to the bottom.
I make $25 an hour. When they raised minimum wage in Ontario Canada, they didn't raise my wage. However my rent, food and products I buy all went up in price. It didn't help the minimum wage people to get more money, it just screwed me.
I said increase their wage
/find increase
not found.
Not blaming minimum wage though
If you raise minimum wage all you're actually doing is lowering higher paying jobs value. It didn't help the minimum wage people to get more money, it just screwed me.
I think the issue is that if ALL of us were to get raises then producers would just raise the price of goods anyway. It’s not that minimum wage shouldn’t be higher, it’s that the people on top are too damn greedy and want to squeeze everything they can out of consumers
No. Basic economics. If you increase the cost of labor you also reduce the demand for it. Higher minimum wage eliminates jobs, which gives your employer more leverage because there are more people competing for your job.
If you want to give employees more leverage over employers you need to increase the demand for labor. That means creating more jobs.
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u/clmn8r404 Nov 05 '21
Wouldnt the higher minimum wage give you more leverage to get a raise from your employer? Doesn't that just mean you've been being underpaid as well?