Monday, August 11, 2014 2:12:04 PM
Then you have other problems like automation of the work force. As the minimum wage increases, the cost of automating your work force is comparatively lowered. Once automated, the jobs don't come back, and more people go out of work.
I`m not saying companies are angels but as you increase minimum wage you monopolize the markets and empower the biggest ones, once businesses grow to a certain level even governments have a hard time restricting them and your problems exponentially grow.
Monday, August 11, 2014 2:04:03 PM
"We as a society allow a corporation to make billions while their employees are paid so little they need to be on food stamps. I find that morally reprehensible."
As do I, but lets examine that for a second. Why do the employees rush at such a rate for these low paying jobs. Because as you raise a minimum wage the small businesses that make low profits are either wiped out or have to reduce their work force thereby adding to the number of out of work workers. Each person at low paying jobs know they can easily be replaced and the big businesses know this too and act accordingly. If they don't then the big business will itself diminish until it too goes under or is bought out.
As the small businesses are strangled, they can not innovate, can not sell items as cheaply, can not hire as many workers or do as much business, and so they go out of business leading to monopolies and the troubles we are faced with.
Monday, August 11, 2014 2:03:09 PM
HG: "cost to produce a good or service is related to its price. That's bulls.hit."
Well it does have an impact as far as the level of supply is concerned. Obviously, a company is not going to sell a good below what they are paying for it. But the price is effected by the demand as well. More people want Nike shoes the higher the price.
"The only thing that sets the price of a good or service is how much a company can get for it."
Not quite take insulin for instance it has a perfectly inelastic demand curve. No matter what the price is if your diabetic and you don`t buy it your dead. Obviously setting the price to the equilibrium maximizes profits for the company but it also manages the resources at hand.
" because they want someone to look down on. "
I disagree with this rational, I feel it because their is little competition and no tort reform which lowers the equilibrium wage.
"I wouldn't go so far as to say that the principles of economics have no place in the real world"
I didn`t say it had no basis. However things that are rules in econ 101 get distorted in real life.
Some people on here like to pretend as if the cost to produce a good or service is related to its price. That`s bulls.hit.
If it was true a pair of nikes would cost $30, not $250. The only thing that sets the price of a good or service is how much a company can get for it. Cost to produce just decides how big the profit is.
The point is that half of America seems perfectly willing to have a serf class of working poor with no chance at a reasonable life because they want someone to look down on.
We as a society allow a corporation to make billions while their employees are paid so little they need to be on food stamps. I find that morally reprehensible.
Monday, August 11, 2014 1:13:02 PM
@normalfreak2: "It's been proven now that we`ve elected the SAME people back into congress that we don`t want change. People are happy with a do nothing Congress and that`s sad."
People don`t usually understand that long standing incumbents often give their area a real advantage. Higher standing in committees, more money being devoted to their state or district, and more sway with the rest of of the congress are just a few perks. I personally see it as proof that we need a reduction in the size of the federal government. People usually like their representative but hate other peoples representatives. If you don`t want to be influenced by another parties politics reduce their ability to influence your local political structure. Your own vote becomes more powerful and the power of PAC spending is reduced in your election.