Re: Effects of raising minimum wages in USA


">
An increase in minimum wage will not "allow" you to suddenly
increase the price and you know it. Only AFTER people have more
to spend as a result of an across the board increase in wages forced
by a rising minimum wage will you be able to increase prices...
But the prices will FOLLOW the wages only after people get more
money to spend.

It does not follow that an increase in the wage level will necessarily raise
the income level and therefore the spending level of unskilled labor. The
linkage from wages to income depends on the elasticity of the demand for
unskilled labor. For example, capital is a substitute for labor. After a
minimum wage increase, management may opt for more capital intensive methods
of production and this may result in a decrease of income to minimum-wage
earners.


.

Relevant Pages

  • Re: Indian cities cheapest, lowest earning - Report
    ... But keeping price of services ... They suffer most when cost of living increases. ... To assume that minimum wages will take care of problem is to ... A global comparison of purchasing power in 71 cities around the world. ...
    (soc.culture.indian)
  • Re: Indian cities cheapest, lowest earning - Report
    ... But keeping price of services ... lowest rung of the economy, and in a poor economy the base of the ... Follow the current debate about increase in minimum wages in US ... A global comparison of purchasing power in 71 cities around the world. ...
    (soc.culture.indian)
  • Re: Globalization
    ... As for what happens to workers, what happens to workers when technolgy makes their jobs obsolete? ... wages, then there is no incentive to move your manufacturing to other countries, because that is one real reason companies operate in foriegn countries, i.e. to take advantage of the lower wages. ... You can build whatever you want to build, but if you cannot sell it somewhere, you will soon not be building it anymore. ... Besides, if they are able to sell what they do sell, at a lower cost than someone else, that means the the "buyers" are paying a lower price for the same product, which helps the poor more than the rich....the rich don't need the help.... ...
    (alt.politics)
  • Re: Indian cities cheapest, lowest earning - Report
    ... The price of services in India is dirt ... A global comparison of purchasing power in 71 cities around the world. ... With the highest net wages, Zurich and Geneva, followed by ...
    (soc.culture.indian)
  • Re: Libertarian cartoons
    ... also result in wage-earners having less income. ... workers wanting to supply more hours at the lowered wages. ... On the consumption side in Mexico as the price of corn goes up, ...
    (rec.arts.sf.written)
Loading