Minimum Wage Increase Impact/Effect

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Imnotmoving said:
If a mom and pop can’t keep up with a living wage they shouldn’t be hiring. just do the work themselves and pay their family members a less than living wage to do the job.
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Well in theory this great. But the practical reality is that we can not have living wages and cheap things. You can only charge so much for certain products.

Everyone needs a return on their capital and if that return isn’t there they will shut down.

Right now the risk free rate on a 10year treasury is about 4.2%. Why would I run a business that yields less than that. Most mom and pop shops (restaurants, fast food, etc) can’t scale to generate very high returns.
 
When will democrats realize we live in a capitalistic society? Markets not the government dictate wages, house prices, and what I want to drive and eat. This is not central planning where a bureaucracy attempts to tell the people and the markets what we want….never works but they think it can🤦🏽‍♂️🤷🏽‍♂️😂😂😂🇺🇸
 
qwerty said:
Well in theory this great. But the practical reality is that we can not have living wages and cheap things. You can only charge so much for certain products.

Everyone needs a return on their capital and if that return isn’t there they will shut down.

Right now the risk free rate on a 10year treasury is about 4.2%. Why would I run a business that yields less than that. Most mom and pop shops (restaurants, fast food, etc) can’t scale to generate very high returns.
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Things may be too cheap if people can’t live.
 
But wage inflation (in this case self inflicted) drives real inflation and not only creates unemployment and a weaker jobs market but drives up the cost of living for all those recently unemployed…it’s a giant circle jerk with no happy ending🤦🏽‍♂️😢👎🏽🦄🌈
 
morekaos said:
But wage inflation (in this case self inflicted) drives real inflation and not only creates unemployment and a weaker jobs market but drives up the cost of living for all those recently unemployed…it’s a giant circle jerk with no happy ending🤦🏽‍♂️😢👎🏽🦄🌈
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What is the solution? A non political solution.
 
free markets…let supply and demand dictate the price…price of labor and price of end product and services. It will find a balance if we let it. Government intervention never helps when setting price
 
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