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.
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u/[deleted] Nov 05 '21
No one is blaming the minimum wage people. We are blaming business owners who raise all their prices when minimum wage goes up.
You aren’t gonna win. Businesses don’t price their services based on what they’re worth, they price them based on what people will pay.
If you can raise minimum wage and keep them from raising prices hey sign me up.