Quote:
Originally Posted by DTK
Since we're speculating....
Once again, we're talking about a comparatively microscopic amount of money here. So the idea that it's going to lead to some big bump in inflation makes no sense. Sure, companies can raise their prices slightly but, who's really gonna notice a  bump in the price of toilet paper at walmart?
I seriously doubt 2 million people would lose their jobs. Companies still need workers to stock the shelves and say 'would you like to super size that?'
I didn't know this, but 2/3 of low-wage people work for large, highly profitable corporations who not only can imperceptibly pass on the cost, they could absorb it without flinching. Not that the latter would ever happen...
Chart of the 20 largest low-wage employers.
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2 million was a made up number, it could be 1 million or 500 thousand, but bottom line is some will lose jobs for sure...
I wouldn't call walmart for example "highly profitable", they run a 3.57% profit margin (source:
http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics), so it's very unlikely they can absorb a 20% higher labor cost, all costs would get passed on to the customer...
small business are less likely to adopt to a 20% higher labor costs, so many of them could likely go out of business....
so there are multiple downsides, with no upsides to this proposal...