Does lower wages mean lower prices?

If workers for a company get lower wages does that mean lower prices?


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Most Helpful Girl

  • Nope.

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Most Helpful Guy

  • No.

    Fact is, wages in America have been stagnant for the last 30 or 40 years. And yet prices continue to rise. In some areas (medical) more seriously than others.

    Look at the epi-pen fiasco. Or look at the price of Insulin, in 2001 a months supply wholesaled for $45. Today? $1500

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What Girls Said 0

The only opinion from girls was selected the Most Helpful Opinion!

What Guys Said 11

  • Increased competition means lower prices. Lower wages without competition just means higher profits.

    At the same time high wages can result in negative profits, which results in everyone getting 0 wages when the company folds.

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  • It might, but usually not.
    What it usually means is that retailers increase their margins, at the expense of their workers.

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  • No. Increased competition decreases prices, along with low consumer price index or inflation.

    Also export and inport of the goods or services is also a factor.

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  • In theory, yes. In practical application it means more $$$ for the CEOs and managers and whatnot.

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  • That's not how this works, that's not how any of this works...

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  • not necessarily. prices are set based on supply and demand, or consumer value. like a ferrari could cost as much to make as a nissan or a ford, but it's a premium car so is marked up more.

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  • It can If the money saved from paying less doesn't go into paying the bills.

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  • They will have to adjust the prices to the consumers needs or ain't nobody gonna buy that shit

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  • No, as clients are who set how much they are willing to pay.

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  • It means bigger profits for the company.

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  • No. Just means the company's leaders are more greedy.

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