On Monday, September 4, 2017 at 9:52:22 AM UTC-7, Sir Ridesalot wrote:
On Monday, September 4, 2017 at 10:24:47 AM UTC-4, jbeattie wrote:
Snipped
Well, you can pass the cost of wages along in price, assuming price elasticity. Smokers don't have a similar option for increasing revenues to cover the cost of cigarettes -- so the markets do operate differently. Paying a higher minimum wage also stimulates the economy because workers have more buying power. It's trickle-up instead of trickle-down. My son earned sh** in a bike shop and then took all his earnings and bought a bike from the shop. Good discount, but still a money maker for the shop.

-- Jay Beattie.

But how long before the price increases due to the mimimum wage increase negates the minimum wage increase? It seems to negate it pretty quickly here.

Depends on the market and the amount increase in minimum wage, and I'm not saying there should be an astronomical minimum wage. I'm just saying that the market effect of raising minimum wage is complex and not like the effect of spiking the price of cigarettes. It is not some form of economic punishment to curb unhealthy behavior.

-- Jay Beattie.