Labor costs are one of the many costs that businesses have to deal with. It is unfair to assume that labor costs cannot go up--or if they do, it's somehow BAD for everyone. Meanwhile:
A) Most min wages increases aren't that dramatic, or, they are phased in over a number of years. e.g. the 5.15 to 7.25 federal min wage increase took place over three years. So it's not a sudden hit like that. B) You forget that your new workers now might spend more money at your food-shop. They gotta eat too; but now, instead of cooking rice and beans at home, they might just buy a meal from you. This applies to both the workers in your shop who you pay more, and the countless others in other stores who make min wage. I bet that the McDonalds employee who wants some food is sick of the same old McDonalds, but with their min wage salary, cant quite afford your food. BUT! If their wage goes up 33% and your food cost goes up 10%, well, they are still more likely to be able to afford it and thus purchase it. C) If any other good that was required for business went up in cost, then what? OMG they're charging me more for my X or Y! I cant allow that to happen! Except, if it's a supplier of something other than labor, you cant always do something about that. but for some reason, labor is expected to remain very cheap while other goods get more expensive. that doesnt make sense.
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It is unfair to assume that labor costs cannot go up--or if they do, it's somehow BAD for everyone.
Meanwhile:
A) Most min wages increases aren't that dramatic, or, they are phased in over a number of years. e.g. the 5.15 to 7.25 federal min wage increase took place over three years. So it's not a sudden hit like that.
B) You forget that your new workers now might spend more money at your food-shop. They gotta eat too; but now, instead of cooking rice and beans at home, they might just buy a meal from you. This applies to both the workers in your shop who you pay more, and the countless others in other stores who make min wage.
I bet that the McDonalds employee who wants some food is sick of the same old McDonalds, but with their min wage salary, cant quite afford your food.
BUT! If their wage goes up 33% and your food cost goes up 10%, well, they are still more likely to be able to afford it and thus purchase it.
C) If any other good that was required for business went up in cost, then what? OMG they're charging me more for my X or Y! I cant allow that to happen!
Except, if it's a supplier of something other than labor, you cant always do something about that.
but for some reason, labor is expected to remain very cheap while other goods get more expensive. that doesnt make sense.