I just realized that a fact of increasing the minimum wage is that when it is increased, more people will instantly be working at minimum wage. Anyone who now makes well over the present minimum but makes, for instance, that Seattle $15, will be added to the count of people making minimum wage. This is not an improvement.
On May 2, 2014 at 08:27, BigPapa said...
That's a classic false dilemma. With a side of... oh, that's two false dilemmas.
Raising prices may result in fewer customers, or, it may not. This forum is replete with integrators saying they raised their prices and got no push back, if less questioning of their rates. Or they lost bad customers and got more good ones. So the raise rates = lost biz - always true notion is bunk.
As soon as you claim that I'm saying ALWAYS, you're misstating what I said. I said this will happen. I did not say it will always happen, and of course there will be exceptions. Your objection that it will not always happen is an objection to a criterion that I did not express or imply.
If purchases are the same in quantity and more money is to be paid to employees, prices have to go up or employees have to thin out.
There is also no consideration of scale or increment.
That's because it's not needed for the statement to be true. Generally, in case it doesn't occur to you that I mean that.
If you raise your prices 100% you will probably lose customers.
Agreed.
If you raise them 1% they may not even notice.
Agreed.
If you and all your competitors raise your prices 5%, you may not lose any customers... or lose very few.
If the minimum wages increases, people who are just squeaking by now at an income level equal to the new minimum wage will be exposed to any price increases and it will be more difficult for them to afford then what they can afford now. Our clients don't count here because they are nowhere near being on the edge like that.
