XPost: alt.society.liberalism, alt.atheism, talk.politics.guns   
   From: markp@NOSPAMmail.com   
      
   On 3/2/2013 11:51 AM, RD Sandman wrote:   
   > Jeanne Douglas  wrote in   
   > news:hlwdjsd2-E81DEE.19204701032013@c-131-121-196-216.gonavy.usna.edu:   
   >   
   >> In article   
   >> ,   
   >>   Jason@nospam.com (Jason) wrote:   
   >>   
   >>> In article , "Scout"   
   >>>  wrote:   
   >>>   
   >>>   
   >>>>>>>> Sometimes.  But then when the wages go up so do the prices of   
   >>>>>>>> the goods and services you wish to buy because they now cost   
   >>>>>>>> more to produce.  Then your gain was only temporary.   
   >>>>>>>>   
   >>>>>>>> Raising minimum wage affects a lot more people than just those   
   >>>>>>>> at the very bottom.   
   >>>>>>>>   
   >>>>>>> That's why it's called a spiral. One thing affects the other.   
   >>>>>>   
   >>>>>> Yep.   
   >>>>>>   
   >>>>> One difference is that higher wages create higher demand for   
   >>>>> products and service. Higher prices do not.   
   >>>>   
   >>>> And do you think higher wages can occur without higher prices in   
   >>>> the products and services so as to pay for that higher wage?   
   >>>   
   >>> Good question--the answer is that we will have higher prices in the   
   >>> products and services so as to pay for that higher wage.   
   >>>   
   >>> I was employed by Long John Silver's Seafood Shoppe when the minimum   
   >>> wage was increased. The prices charged for every item on the menu   
   >>> were raised as a direct result of the increased minimum wage.   
   >>   
   >> So what?   
   >>   
   >   
   > Are  you familiar with the wage-price spiral?  You sell a product or   
   > service at a particular cost and based on volume of sales you make X   
   > amount of money.  If you increase the wages paid, you increase the cost   
   > to make the product or perform the service.  To maintain the same profit   
   > margin (not to increase it) you need to raise the price of the product or   
   > service.  That may well affect sales and your profit margin.   
   >   
   Again, you're talking about profit margins but ignoring actual profits.   
   >   
   >     It is like a person working at Joe's.  He wants to buy a new car but   
   > cannot afford one.  He goes to his union to get a better wage deal.  The   
   > union gets one from company.   
   >   
   >     Ahhhhh, he has more money in his pocket.  Unfortunately, now his   
   > company has to raise the price of their product accordingly.  It is now   
   > less competitive in the market place and their product forecasts fall   
   > off.   
   >   
   >     Additionally, other companies see the price increase of Joe's   
   > products.  But they still want some of them.  So they have to cough up   
   > more money to afford them.  But, they don't have the money.  They go on   
   > strike and get their union to get them more money.   
   >   
   >    OK, they get it and can now afford Joe's product again.  Wait a minute,   
   > now the autoworkers see that they can't afford Joe's product or the other   
   > one easily as they could before.....damn, another strike, another raise   
   > for the auto workers.   
   >   
   >     About this time the original folks are ready to buy new cars again.   
   > Damn, now they can't afford the new sticker price.....another   
   > strike......   
   >   
   I get it. You believe all inflation is caused by wage increases.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)