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Old 06-28-2013, 07:20 AM   #99
BroncoBeavis
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Quote:
Originally Posted by TonyR View Post
Well that's an extreme example. Again, the concept here is rather simple. Our economy has a massive demand problem. The only way to increase demand is to put more money in people's pockets. The lower down the food chain, the more effective the stimulus effect. Higher wages does not have to lead directly to an equally large increase in prices if spending and demand increase. I know this is hard for you to understand but it's basic economics.

I'm not saying this is "the answer", and I'm not saying $15/hr is "the number". I'm only suggesting that this theory has some merit to it that is worthy of discussion. And you can certainly argue that this is favorable to handouts and tax cuts. This will work for efficient industries and efficient businesses. Those that aren't efficient may struggle and even fail. Darwin would be nodding his head.

Ever heard the expression "a rising tide lifts all boats"? Look it up.
It's really a production problem, not a demand problem.

The real problem with $15/hr grocery checkers is, especially by the time you add in all the state and federal (including now Obamacare) mandates, most employees become priced out of the market.

In the real world, most people would be willing to check their own groceries and save rather than have a $20+/hour cost tacked onto their shopping. Or alternatively, it hands even further advantage to kings of low labor automation like Amazon.

So the low-skilled workers get sent home. And now instead of the state worrying about how to help a $9/hour employee get by, they've got an unemployed worker with no marketable skills to figure out what to do with.
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