Originally Posted by Arkie
Fixing the labor market at higher costs does two things. It makes the selling cost of products and services go up, and it creates more nominal income for consumers. Naturally, the free market side will try to re-balance with higher prices and a higher cost of living. The only way to stop this is with price controls. Might as well fix the entire market instead of keeping one side free. Then the confused people couldn't blame the negative outcomes on a free market that doesn't exist.
that is silly. McDonalds grossed after expenses last year $10 billion. They could raise their minimum wage to $15 an hour and they would still gross $9.5 billion.
If they decided to pass on the cost of the wage to the consumers we would pay a whopping 5% more on our purchase.
Hell, I would pay 5% more on my purchase from McDonalds so their employees could make $15 a hour.