XPost: alt.society.liberalism, alt.atheism, talk.politics.guns   
   From: me4guns@verizon.removeme.this2.nospam.net   
      
   "Dakota"  wrote in message   
   news:kgth6i$42d$1@dont-email.me...   
   > 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.   
      
   Business is about profit margins....not just 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.   
      
   Who said anything about all?   
      
   Some inflation is certainly caused by wage increases.   
      
   Hell, my desk at work has a notation written on the bottom of one of the   
   drawers that the desk was that of the VP of the company and at that time he   
   made $22,500 a year.   
      
   So by your standards anyone making minimum wage should be just as wealthy as   
   he was because their wages match his.   
      
   However, that isn't true because of inflation. Increasing wages, result in   
   increased costs for the same goods/services.   
      
   Now what do you call it when you have to pay more money for the same thing?   
      
   Inflation?   
      
   I think so.   
      
   Really, if you're going to continue to talk about this subject, then you   
   need to take some Economics courses so you have some idea of what it is   
   you're talking about.   
      
   1- Sales don't increase just because you want them to   
   2- Bottom line profit margins are already very narrow in most things due to   
   competition   
   3 - As a result of 2, one can't simply say that companies can absorb   
   increased costs by lowering their profits   
   4 - Increased costs will eventually mean increased prices, reduction in   
   amounts and/or reduced quality.   
   5- The results of 4 generally mean lower sales, not more   
   6 - As prices increase due to cost increases the 'advantage' of the   
   increased minimum wage disappears   
   7 - As the inflation results in a decrease in the value of the boost in   
   minimum wage, so does it decrease the value of all other wages.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)