Quote:
Originally Posted by MX425
I can respect that point regarding the wait time and such. I just still think once you raise the bottom line on the cost of running a business you either cut back the employees, i.e reduce production, and then supply drops, or you raise prices to cover your expenses.
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my point is that if a profit-maximizing grocery owner could raise prices, he'd do it whether or not he has to give a stockboy a raise. plausibly he'd have lower profits, but there's no reason to think a minimum wage hike causes inflation....
2ndly, the idea that rising wages cause inflation is
phillips curve hooey, an attempt to explain inflation while ignoring the obvious cause of inflation (monetary inflation).
3rdly....I got distracted and forgot what 3rdly was...oh yeah, the most significant impact of minimum wage laws is upon the stockboy that didn't get hired when the old one quits, the jobs that aren't created and aren't replaced. It's sort of a quite, unseen attrition. Most folks can understand at a very deep level what would happen if minimum wages were $35 per hour instead of $7.25 - it would be you (me) that doesn't have a job. The same thing happens at $7.25 an hour, the number of people negatively impacted are just smaller and they're stupid kids and such anyway.