XPost: alt.society.liberalism, alt.atheism, talk.politics.guns
From: markp@NOSPAMmail.com
On 3/2/2013 1:55 PM, RD Sandman wrote:
> Dakota wrote in 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.
>
> Interesting, when we had this conversation a few posts up I was talking
> actual profits, you brought in margins. Apparently, your memory is
> short. ;)
>
You were talking about margins back then too. You just called them
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.
>>
>
>
>
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