posted on Jan, 8 2014 @ 08:48 AM
reply to post by iwontrun
Great job at sacrificing today and taking advantage of your existing options to place yourself at a better negotiating spot in the future.
Raising the minimum wage is a political move and only helps the MAN in the long run.
Hypothetically, today business makes 30% profit but tomorrow they incur a 5% increase on labor costs. Surviving Businesses aren't typically charitable
in the long run when it comes to operating costs , so they pass that 5% increase to the consumers.
The kicker is that Business are also aware that consumers don't like to see prices go up , so they take advantage of an opportunity and skew the
numbers a bit. So while the 5% is the actual increase in operating costs the consumer will most likely see a 5.5% or 6% increase.
So the results are
1. The minimum wage employee makes more money, but lost a .5% to 1% in buying power.
2. The middleman lost the most, because he did not get the mandatory pay increase so he loses the full 5.5 to 6% increase.
3. The man gained a .5% to 1% bonus
So the problem with minimum wage , Obamacare and other gov't programs is they are tools used by the gov't to obfuscate the real intentions or
The gov't along with the media has become the lobbyist used car salesman and they give you a bait and switch or sell you a lemon.
edit on 8-1-2014 by interupt42 because: (no reason given)