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[+] -15 points 4 days ago (9 children)

But higher wages will increase the cost of living as employers raise prices to pay to for the higher wages.

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  • [–] 11 points 4 days ago (2 children)

    So, conversely, lower wages would make prices cheaper? By that token, I suppose you would be happy to have everyone's salaries cut in, say, half?

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  • [–] 1 point 3 days ago (3 children)

    I have yet to hear of a business in which 100% of the cost to the consumer is labour. Materials, equipment, rent, profit margins, etc. all mitigate the impact of labour going up.

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  • [–] 1 point 2 days ago (2 children)

    Yes, but unless these other costs are going down, increasing wages will lessen profits.

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  • [–] 1 point 2 days ago (1 child)

    Not necessarily. If your labour is 25% of the cost of a product and it increases by 4%, the price of the product would go up 1% without affecting the profit at all (in dollars, not percentage).

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  • [–] 1 point 2 days ago

    It's better to let the free market determine wages. Wages are affected by the law of supply and demand. If a certain job is in high demand, the wage will go up. The government forcing wages up is artificially increasing demand.

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