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Originally Posted by EADGBE
You don't think there's a difference between working for $7.25 an hour and working for $15 an hour? I think the workers would have a different opinion.
Most of low wage workers are not looking to make the most money possible, but are looking to supplement their income.
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1. I think key a question you should ask yourself (you don't need to answer in thread) is, why wouldn't you want people to have good wages? Personally, I would much rather Wal Mart pay their workers a decent wage, say like Costco, instead of having the Walton kids chop up $150BB six ways.
What you don't get is, the Walton kids will still chop up 150BB six ways (as in percentage of wealth walmart generates). That 150BB is based on how many products walmart sells, not how much profit they generate. It does not matter how much the labor cost, Walmart will operate on a 3-4% margin. The economic reality is the market will adapt to the new wage. If they can't sell x product at a 3-4% margin due to labor cost, they won't sell it, unless people are willing to pay a higher price (which for most products consumers will pay more, because they are making more, but you will lose economic activity and sales for those products that were previously priced as high as demand will allow, and already at the lowest margin). This results in people making more, but cost of living increasing, and the share of wealth not changing at all (or economic inequality). Also, less economic activity means less jobs, less growth, less construction, less investment in innovation, etc etc.
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The market is not some infallible deity we must always bow down to. The market for labor is just not very efficient. Yes there are jobs like nursing and software developer where demand is sky high and drives up wages. But we were in full employment in a booming economy, and wages still didn't go up.
https://www.businessinsider.com/supp...y%20broken.%22
I've seen other studies saying differently, it's likely we have to wait a few years before we get any type of consensus.
Last edited by itshotinvegas; 07-24-2020 at 11:38 PM.