As the cost of livin continues to rise, so do the minimum wages. Companies complain about this, even small businesses that do well even though they're small. Employers are still people too, they need to make money to stay alive but yet they complain about minimum wage being so high?
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From a classical economics perspective , the theory says that minimum wage causes inflation.
But is it necessarily a bad thing?
Actually , no.
"So what happens when the minimum wage is increased? Consider the situation in restaurants that have a middle-income clientele. Restaurant owners, facing a higher wage bill, would like to pass the costs on to their customers. But their customers are people whose incomes have not been affected much, if at all, by the higher minimum wage. So if prices at the restaurants go up, these people will buy less and the restaurants will now lose some profits. They may raise prices a bit, but not much. Whatever they do, the restaurant owners will have to, if you’ll pardon the term, eat some of the increased costs.
The point is that, with the increase of the minimum wage, firms that face higher costs cannot maintain profits simply by raising prices regardless of demand for their products. While the increase of the minimum wage will increase demand for those products purchased by low-income people, it will not yield an equal increase in demand for all products." ...
Sadly , the country is run by a bunch of lobbyist and special interest groups who acts in the interest of the stakeholders they represent instead of the people.
Spin doctors be spinning for their clients I suppose.0