Would raising the minimum wage make the price of goods that those workers make go up?

Would raising the minimum wage make the price of goods that those workers make go up?

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en.wikipedia.org/wiki/Basic_income
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nbcbayarea.com/news/local/Minimum-Wage-Jumps-to-13-Per-Hour-in-San-Francisco-385257511.html
google.com/?gws_rd=ssl#q=ohio minimum wage
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I personally don't believe that the corporations are going to eat the wage hike, thus the only other option is to pass it on the consumer. I could be wrong though.

yes

but it also means those workers have more money to spend increasing demand in society

another thing you could do would be cutting taxes which also increases demand (consumers have more money to spend)

If you want to fix the economy you have to increase the amount of money consumers have available to spend

It always gets passed on.
ever heard the phrase that a corporation never pays taxes?

those feet are raising the minimum blood pressure of muh dick

No . It would decrease CEO salary in a normal healthy world , but greedy CEO wants to buy 70 mt yacht instead of 65 MT POOR HIM HOW CAN HE LIVE ?

>but it also means those workers have more money to spend increasing demand in society

Shit, we should raise the minimum wage to $75/hour so they have even more money to spend.

Right?

If everyone made $100/hr everyone could buy a house.

How about we just gibs them infinite money? >checkmate economists

>raise the wages
>workers have more money to spend and grow the economy
>price of goods and services go up because of higher wages of workers
>it all cancels out
congrats, now youve got inflation

OP forgot about Econ101
it wasn't a required course in genderqueer studies

Two primary things to look at to answer your question:

1)How much of the cost to make said goods is labor vs. materials.

2)How elastic is the price of the goods themselves?
-If you raise the price of gasoline by even 2 cents a gallon, you damn well better believe everyone's going across the street.
-Raise the price of a dishwasher $50, you'll probably still sell.

yeah but shit isn't made in teh us so really it could drive the price of goods down since all those din dus will lose their shitty service jobs that can be done by robots

not if the owner is willing to live on foodstamps

America got caught up in the 'wage-price-spiral" in the 70's. It already happened and it was really BAD. Read a book nigger.

It's simply the case that all minimum wage jobs pay more than the market value of those jobs. You know what earning the minimum wage says? It says your boss would pay you less if he legally could. Now we have a movement to raise the minimum wage to be a "living" wage. These jobs simply aren't worth a living wage. We're already fucking with the market enough. Most of that cost is passed on to the consumer.

no. companies will lay people off or find way to automate processes first.

Yep. Raising the minimum wage is disastrous for the middle class because they're the ones with cash savings. When the value of that cash goes down they are fucked.

>Would raising the minimum wage make the price of goods that those workers make go up?
usually yes

you wish...
it will drop prices
and fill the unemployment office

What about people that dont make minimum wage and have actual skills? Wouldnt that just make my buying power less since my wages arent going up?

No econ 101 class here

>accelerate your car to 60mph
>wow I guess by that logic you should always drive 300 mph lol retard

you only raise the minimum wage in a manner to boost the economy, much like you would cut taxes to boost the economy. It's a policy issue that you implement during a recession (like the one under Obama the last 8 years).

Bush fixed the post 2001 crisis with massive tax cuts and spending increases. Obama, as far as I can tell did nothing but increase the debt, through bailing out wall street. No money went to consumers and demand is still low.

>cancels out
It doesn't because prices don't rise instantly

You want low level inflation to people are encouraged to save/invest/spend

otherwise you get deflation. Do you know the greatest period of deflation in US history? The Great Depression.

>cash savings

that's a drug dealer thing

It does decrease your buying power. So you push for higher wages to balance out, and inflation stikes again

Increased demand=increased prices=increased wages

the worst thing you can do is lower wages (or outsource jobs) because you are draining consumer demand from the economy.

Less consumer demand means no one is buying products anymore leading to a deflationary spiral like the Great Depression.

>that's a drug dealer thing

No that's an every person thing. If you don't have a checking or debit account I don't know what you're doing with your money.

Raising the minimum wage would mean smaller work forces because if the minimum wage is hiked, some business would have to fire some staff because they would then be making a net loss.

The higher wages means more products are being bought in the economy

The real way to lower prices so everyone wins isn't to cut wages it's to use new technology/organization to increase production and efficiency. Increased production lowers the cost of goods and increases the demand in the economy because people have more money left over (without any subsequent cut in wages)

"cash savings" implies you're hiding it under the mattress.

middle class people invest their money.

Prices of goods will go up, as well as companies will move production where wages aren't as high.

>Would raising the minimum wage make the price of goods that those workers make go up?
Quite possibly. However, wages are typically only a relatively small fraction of the price of finished goods. For example, if wages went up in by 25% in a grocery store that pays out 10% of its income as wages, we would expect prices to rise about 2.5% to cover the costs. So, it's quite likely that any increase in prices due to a minimum wage hike would be relatively small.

of course, different industries pay out different shares as wages, and many have few or no people earning minimum wage, so it's hard to say exactly how much prices would rise across the board, but probably, not much.

>"cash savings" implies you're hiding it under the mattress.

Cash money is anything that's not invested. Where the money physically sits doesn't matter at all in the context of what's being talked about.

>I personally don't believe...
Instead of relying on believing, why don't you go out and do the research yourself? Or ask someone who runs a business?

>Shit, we should raise the minimum wage to $75/hour
Nobody is recommending anything of the kind. The dose makes the poison.

That's not "cash"

Banks only have a limited supply of actual cash on hand at any one time, if there was a bank run (not likely these days) you'd quickly find that your money is just a few numbers on a computer monitor, and only the first few people that withdrew their accounts would actually get their cash everyone else would be SOL.

Thankfully the Federal government ensures your account up to $250,000 these days so bank runs don't happen frequently.

The only propblem with this is that we always become tolerant of the dose, one that is only treating a symptom. Thus the dosage increases over time, which it always has, until we reach the point where it is no longer effective in treating anything.

Literally communism, you must want to destroy our judeo-christian values

Now's not a good time to be autistic

the root cause of our problems in the modern economy is a lack of consumer demand due to low wages, high taxes and high debt

you have to fix those problems somehow, by raising wages, lowering taxes or lowering consumer debt. There's no other way around it. Minimum wage would by no means fix "all" the problems, but it would at least partially help.

Unless people are actually able to afford to buy goods and services (preferably without going into debt) the economy will continue to flounder about.

Gov't forcing a wage hike doesn't fix a goddamn thing. Forced wage increases are always just passed back to the consumer, negating any positive effect they could have.

Lowering taxes is always a good start. Has to be balanced with actual reductions in gov't spending.

>Somehow if we raise the minimum wage to 10.50 it'll spiral out of control quickly reaching 75.00/hr.

Just shut up. The minimum wage has been around since the 60's it's shown no sign of spiralling out of control so far. Thus the assertion of a slippery slope is unwarranted.

Yes.

Source:

California. I live there. It's fucking 9.25 for a footlong at subway now. Just fuck my shit up famiglia

Look at Spain for example

they are one of the few countries in the EU improving because they cut taxes, as a result their GDP is increasing.

Now of course the EU is suing them for "violating deficit rules" of course if you can't cut taxes how are you supposed to fix the economy? Well the only two options left are either a debt write down or wage increases.

Prices don't rise immediately so everyone gets an initial benefit. From increased demand.

That increased demand spurs investment and production creating a cycle of more production and demand.

>actual reductions in gov't spending

no because you are taking money "out" of the economy if you lower govt spending.

You need to lower taxes and increase spending, that's how Bush ended the post 2001 financial crisis and how Reagan jumped started the economy in the 80s

>Forced wage increases are always just passed back to the consumer, negating any positive effect they could have.
You're neglecting distribution effects, like a jackass.

Then give me an absoute minimum wage that will always work.

Yes, in the worst possible way: It eliminates jobs that produce those goods. If a job position becomes negative in revenue it becomes redundant, and is eliminated. So, if it is profitable for a business to employee 10 people at $10/hr, and the minimum is raised to $15, you have to eliminate 5 jobs. You now have 5 people who have to do the same amount of work which was previously spread across 10. You can see how this can causes businesses to shut their doors.

>It doesn't because prices don't rise instantly
yeah it does. as soon as employers are forced to raise their employees' wages, they'll increase the price of their goods/services to remain competitive, or they'll go bust.

you can raise and lower the minimum wage based on the economy just like taxes or govt spending

Good economy=low min wage
Bad economy=high min wage
Good economy=high taxes
Bad economy=low taxes

The government needs to act counter cyclically

No, companies would just remove current minimum wage positions and replace them with automation, like Wendy's and McDicks are doing. They'd probably also hike the price of goods and accelerate the declining dollar value at the same time, compounding the end effect.

Instead of putting a bandage on a wound and waiting for it to heal, socialists are opting to amputate the entire limb, asking for a prosthetic, and hoping the doctors are willing to foot the bill.

>jump start

you don't leave the jumper cables on your fucking car once its running, You take them off again.

Minimum wage is the main reason we have persistent unemployment

but that doesn't effect the entire economy immediately

workers now have more money to buy more consumer goods meaning more money for business and more demand in the economy.

Prices take a while to adjust after the increase in spending.

CEOs provide way more value than your poor min wage worker

en.wikipedia.org/wiki/Basic_income

This will become the norm in the near future. They're already considering implementing it in Switzerland.

But the economy was crap after the 70s energy crisis which is why it needed to be jump started

The main reasons for unemployment currently are high taxes, mass immigration, and outsourcing not the minimum wage

the min wage was actual higher in the 60s when we didn't have the taxes, mass illegal immigration and outsourcing you see today.

In fact it was in the 50s that Eisenhower kicked out millions of Mexicans.

When you artificially increase demand, what happens in a market?

Raising minimum wage is artificially increasing demand for jobs. You're talking in terms of the job market, and when you have artificial demand, the availability of supply is diminished. In other words:
>this kills the jobs

Re-reading the question, I guess my actual answer would be yes, but that wouldn't be the primary outcome.

Australia raised their minimum wage significantly; prices rose, but not at the same exponent that min wage did. The US minimum wage is retardedly low relative to inflation over the past 40 years. Most business owners who oppose are just pawns of the stupid fucking filthy rich who are maxing out their dollars.

Yes

Aus has like an $18 min wage and one of the most expensive places in the world

Basic income is retarded

you need to incentivize production and labor but still make sure people are compensated enough to buy goods and services in society.

That's not how the economy works Keynesian.
Lower demand -> Higher Savings -> Lower Interest Rates -> More Investment -> More Jobs

Money doesn't just disappear, it naturally gets reallocated to the best alternative.

The economy is a fight between spending and investment. When one is deficient, the other takes over until it corrects itself.

>and when you have artificial demand, the availability of supply is diminished

No it isn't

The only thing that is affected is wages, which again you want to go up so that production can be spurred by spending.

You can't have a business if no one has any money to buy your product.

>labor
What happens when automation takes over and there's no longer any need for human labor?
Look into the idea of social dividends. Also, there's still the stock market and gambling (and the possibility of legal prostitution) for people to make money without formal jobs.

I live in king county where many places have already adopted the 15$/h raise, there have been huge increases in costs. Groceries, fast food, amenities, rent literally everything has gone up in price. Here I am still making the same $24/h working a much more difficult and higher skilled job.

How the fuck does increasing the minimum wage help anyone when it it just forces people to hire less employees but still increases everyones cost of living. It's bullshit.

Future economy will rely on extremely cheap goods and lower wages.

>basic income is retarded
+1

>needed to be jump started
Understood.
But you have to go to the root of the problem. If your battery is dead, you will have to keep jumping it until you buy a new one.

>main reasons
>high taxes, mass immigration, and outsourcing
ex-fucking-zactly
Fixing these fixes the economy. See: TRUMP 2016

So if a position becomes redundant to a business at $12/hr, what happens when you increase minimum wage to $15? The position is eliminated and the workload is redistributed among the other workers. This is only requires the most fundamental understanding of how a business is operated.

Higher savings leads to a deflationary spiral, i.e. the Great Depression

You aren't going to spend money when demand is going down and no one can afford to stay in business. That's why the Great Depression happened and we were at 25% unemployment.

The only solution is to "create" demand either by tax cuts, debt write downs, or somehow increasing wages.

I put the word persistent in there for a reason, but you seem to lose the nuance. There is an underlying shortage of labor because people who would get a job below the minimum wage can't because muh feels.

Quoted for truth.

We don't have a mimimum wage, but I think we can fight about which is the more expensive place to live.
Fucking 40% tax.

The real minimum wage is 0.

Yeah, and it matches so there's not problem. The future economy won't function the same way it does now it's going to evolve just like it always has. The economy doesn't function today like it did 100+ years ago or back when we had Gold standard.

Yeah, you're retarded. You obviously don't understand how the free market of money works. You have this overly simplistic naive keynesian scare lens rather than understanding the economy for what it is.

Higher Savings -> Higher Supply of Money -> Cost of Money goes down -> Investors experiment/hire people for a new business concept

>liberals create permanent inflation in order to pay for gibs
>"WHY ISN'T THE MINIMUM WAGE A LIVING WAGE ANYMORE???"
>"IT'S REPUBLICAN'S FAULT!!!"

This, 9/10 footpussy easily.

>The Great Depression never happened
Keep trying

Honestly though, the gibs are what are royally fucking the econmy

The next step is the service economy, automation doesn't automate that. You might get paid to give blowjobs to Goldstein. But 5 blowjobs will buy you a house. You get it, way better for everyone.

Ever heard of a fleshlight, or a sybian?

>raising minimum wage to boost the economy
When you raise minimum wage people that are willing to work for less than minimum are not able to find jobs because companies are not able to afford their services, thus fucking up the economy. Inflatition does boost the economy at a certain point, but raising minimum wage is not the best mean to do this. I wish there was no minimum wage.

>no longer any need for human labor

We all get fat and lazy like that one Pixar movie

>If your battery is dead
I'm not sure how you have a "dead" economy unless you live in Detroit or Africa or something.

You aren't looking at the macro economic level

high wages means more spending which means more business and investment in the overall economy.

It's the exact same idea as cutting taxes "if" you have more money to spend in the form of tax reimbursements you are helping the economy by spending it not hurting it.

>There is an underlying shortage of labor

That's exactly wrong

we have an incredibly high surplus of labor leading to low wages and as a result low overall demand

newyork.cbslocal.com/2014/06/09/hundreds-line-up-for-chance-to-become-plumbers-apprentice/

>Cost of Money goes down

This causes a deflationary spiral

If you are making money simply by holding it (and doing nothing) you aren't going to spend it.

Again this is why we had 25% unemployment during the Great Depression, no one wanted to spend any money.

How can you run a business and hire people if no one is buying anything?

Great Depression was a cause of public crowding out of the free market. Socialism handicapped the economy from recovering. Look at the 1920 Depression which recovered in a year without government intervention. There's your red pill for the night. Anything else you are confused about?

Ever heard of a human organism which you can play with their emotions?

>liberals create permanent inflation

How?

>California. I live there. It's fucking 9.25 for a footlong at subway now. Just fuck my shit up famiglia

price of a footlong roast beef sandwich.

City MinWage RBSandPrice

San Francisco $13.00 $8.65

Toledo, Ohio $8.10 $7.75

Difference $4.90 $0.90

So we see from a casual observation of prices that an increase in the minimum wage will affect fast food prices only a little bit. In this case the increas in price was only 20 percent of the increase in the hourly wage.

Sources.

nbcbayarea.com/news/local/Minimum-Wage-Jumps-to-13-Per-Hour-in-San-Francisco-385257511.html
google.com/?gws_rd=ssl#q=ohio minimum wage

order.subway.com/Stores/Find.aspx#pg1

Also: you are a dumb nigger.

If you're going to keep regurgitating deflationary spiral scare tactics while non sequituring I'm not going to reply to you anymore.

>Again this is why we had 25% unemployment during the Great Depression, no one wanted to spend any money.
No, you're super blue pilled regarding statism

>we have an incredibly high surplus of labor leading to low wages and as a result low overall demand
Yes, imbecile that's why we need to remove the minimum wage so those people can be hired at their free market wage rate.

“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”

>Then give me an absoute minimum wage that will always work.
Right after you give me an absolute price for gasoline that will always work.

>You aren't looking at the macro economic level
Implying that a paradigm shift in wage won't have considerable impact on the macro.

Are you for real? High wages means less jobs. You'll have more people unemployed, dependent upon the government because mass elimination of positions in small and medium sized businesses.

see here --^

Obviously. Asking to raise the minimum wage is just asking for inflation. Nothing actually changes, you're just getting a bigger superficial number that equates to the same amount of purchasing power.

I find it hard to beleive that most folks would willingly do this.

>How can you run a business and hire people if no one is buying anything?
If you read my posts, and understand them, and you actually were smart you would start rethinking your failed keynesian ideology. Key cycle: more savings -> lower interest rates -> increases investment.

You americans just have to face the fact that no matter what the outcome of the minimum wage debate is, you country is economically doomed.

There are not enough jobs for the people and gov spending is constantly going up, so a complete economic collapse is inevitable.

Your gov has been prepping for this over the past couple of years as they know its coming. Civil unrest awaits the masses and the police state will crush you all when the bubble pops.

Fucking Sup Forums won't even let me create a chart. It delets multiple spaces, apparently.

>raising minimum wage to boost the economy
Is there actually examples of this ever happening? From the economic stand point you want to devalue currency and wages so you could export more shit.

This thing is literally happened in britain when brexit. Pound sterling dropped for couple of days, then everyone realized that that fuck it's 20% cheaper to buy shit from UK now. Then that jumpfucked the exporting business back up.

Seems you are unaware of the Clinton foundation and their colleagues.

One argument is that minimum wages haven't gone up at nearly the same rate productivity has. If this is true, companies pocket the difference.

Even if this is true, companies are just going to raise prices or fire workers. I cannot see a large company willingly accepting a decrease in profits.

>the police state will crush you all
you seem to forget a critical part of american culture

The Great Depression was far worse than the 1920 recession. Just waiting through the storm would never have worked. And if you don't want the Keynesian explanation then here's the opposing one.

Under Causes:

"Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression."
Still think we shouldn't raise wages?

end fed

govt makes money based on the production and will of the volk as needed.
be self sufficient
set own exchange rates
ignore jew nations who try to fuck you because blablabla kikery / usury
globalism is dildos, we don't need it.
NS nations can have the freest trade with each other.