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Originally posted by bowtomonkey
It will make things more expensive. The shops will become more expensive. I know because that's the way it has been here for 20 years. No cheap labour = higher prices = even more higher prices as people who suck a bit more money out, will. Those that can't will go bust.
A lot of Australians buy their goods from America because everything there is so cheap. It's not your mark-ups, it's our overheads. What's more they dodge paying any taxes.
I would say, be prepared for high prices like here, but our market is so small it has to be expensive for retailers etc. Your market is 10 x bigger and safer.
Originally posted by ThirdEyeofHorus
Originally posted by bowtomonkey
It will make things more expensive. The shops will become more expensive. I know because that's the way it has been here for 20 years. No cheap labour = higher prices = even more higher prices as people who suck a bit more money out, will. Those that can't will go bust.
A lot of Australians buy their goods from America because everything there is so cheap. It's not your mark-ups, it's our overheads. What's more they dodge paying any taxes.
I would say, be prepared for high prices like here, but our market is so small it has to be expensive for retailers etc. Your market is 10 x bigger and safer.
Yes, you are correct. It's the basic wage/price spiral. It's such a simple basic concept people need to understand. And it is not going to help anything when the Fed is printing money like Niagara Falls, because the Fed printing money will cause so much inflation even 10 bucks an hour won't do anything for the average person.
Originally posted by sligtlyskeptical
Lets put it this way. Labor on average is about 25% of the costs for the average American business. So if we raise the minimum wage by about 30%, prices will have to rise 7.5% in order to cover the increased cost and keep profits the same. So that 30% increase will still mean about a 22.5% increase in disposable income for those working minimum wage.
Originally posted by Praetorius
reply to post by LadyJae
Exactly. Most businesses/employers in the US are not part of the 1%, and that additional cost to them has to be made up somewhere...which ends up driving the cost of living up, causing layoffs and additional workloads if can't be offset by price increases, and a range of other issues.
People always like to eagerly attack even mere discussion of doing away with the minimum wage, but there are valid and extensive arguments on both sides that require much review and consideration. Sure, if you could just magically give everyone more money at no hidden cost, great - but that's not how the real world works.
Originally posted by randomname
10 dollars an hour won't raise prices on anything. $10/hr doesn't even catch up to the inflation since the last time min. wage was changed.
don't fall for that b.s.
prices aren't determined by min. wage. they're determined by what the market could bare and what people are willing to pay for a product.
you think the price of gasoline goes up and down because what they pay the poor sap that works 12 hour graveyard shifts at shell stations.
Originally posted by dawnstar
reply to post by macaronicaesar
is the problem with the wage, or is it more with his suppliers, ect? see that's the thing, the small business owners are kind of beholding to the bigger companies, they have to pay whatever price they set....they have to help pay for that big fat cat at the top also!
Originally posted by Submarines
It is going to cause me to lay off employees. I can't keep raising prices to compete, so customer service will suffer.
Idiots that don't own or run a small business don't seem understand how things work.
Originally posted by mytheroy
reply to post by Submarines
Actually you could do that, and not increase your prices...It's when greed is in your eyes would you up the prices on goods.
I want to open a business and I would take a cut out of my own money to make sure my employees had a job and were taken care of. It's called taking care of who takes care of you
Employees are the very backbone of any business no workers no business right? Unless your going to do it yourself but that's why you have workers so you don't have to.
Originally posted by KeliOnyx
It does not do the economy any good whatsoever to put the most amount of money in the least amount of hands.
Originally posted by tinfoilman
reply to post by interupt42
No that's why I hate it when people say raising minimum wage will cause businesses to lay people off. Like I've said earlier in this thread. That doesn't make any sense. Those jobs are going away anyway if the boss refuses to give the raise.