Comment on Inflation?
EchoCT@lemmy.ml 2 months agoWithout a way too keep them from just raising costs to match, raising min wage has a limited effect. Taxes on profit are more effective. Reinvestment or raises should be deductable, tax the everliving fuck out of gross profit for the rest.
zarkanian@sh.itjust.works 2 months ago
The area I lived in voted for a minimum wage increase several years ago. Tons of people were saying that it was a bad idea, because the businesses would just raise prices on everything.
Minimum wage increase passed. Prices didn’t change.
I think this is because minimum wage increases don’t happen in a vacuum. There are other things to consider. If your company raises prices, I’m going to go to a competitor who doesn’t. The idea that “they’ll just raise prices” assumes that all businesses will react to a minimum wage increase in the same way, and that’s not the case.
EchoCT@lemmy.ml 2 months ago
Perhaps I was being overly cynical but last years grocery hike was all of those businesses acting in concert. Which I’m sure is illegal for everyone but the rich…