Quote:
Originally Posted by tony404
really thats interesting because I heard that time and time again produce would skyrocket.That's like I was watching this economist and he said if tomorrow walmart gave every one of their employees a dollar a hour raise. It would only raise the cost of goods about a penny.
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Even then it wouldn't cause prices at walmart to rise.
The whole wage vs prices thing is a myth, a myth created by people who don't want minimum wage increased and people who don't want to deal with labor unions.
Prices are set by the market, supply and demand and how much your competition is charging for comparable products are the main factors that determine price.
Increasing wages cuts into profit margins, it's only inflationary in extreme cases.