Where Jacking-up the Minimum Wage Leads ...

[KevinKohler]

Now you're learning. Value is not a set price. It's fluid and very dynamic, and it's why a market, with its millions of participants, is so much better a discovering price. No individual and no government could ever hope to keep up. That is the great economic lesson of the 20th century.

And yet...


Here we are, discussing employers going out of business for lack of employees to keep them running.

Unemployment benefits have ended. In some states, for over a month.

 

[NatMorton]

And yet...


Here we are, discussing employers going out of business for lack of employees to keep them running.

Unemployment benefits have ended. In some states, for over a month.

Again, there are many factors that affect employment. The cost of labor is but one of them. That does not change my point: rising labor cost puts a downward pressure on job creation. Anyone who says otherwise is probably working an agenda.

 

[Luckyone]

oing toAgain, there are many factors that affect employment. The cost of labor is but one of them. That does not change my point: rising labor cost puts a downward pressure on job creation. Anyone who says otherwise is probably working an agenda.

has everyone on this thread forgotten the phrase "supply and demand"? It is the basics of any business. What happens when the world automates totally, a large portion of the population (the poor) will not have enough money to go out and buy anything. This means the supply is greater than the demand and when that happens, prices of products must go down, which in turns makes the profits go out the window. As such, automation as a general rule applying to all businesses will mean things will get worse. There has to be a middle ground found so that supply and demand remain on an even keel.

If I am earning less than a living wage, going to McDonalds to eat a hamburger and fries at $5 is not an option. Buying a chair to sit on is impossible, going to the movies is now a luxury. All of these companies that have automated are suddenly seeing less demand for their products.

 

[Lethargic Aptitude]

Now you're learning. Value is not a set price. It's fluid and very dynamic, and it's why a market, with its millions of participants, is so much better a discovering price. No individual and no government could ever hope to keep up. That is the great economic lesson of the 20th century.

And when supply cannot meet demand it leads to hyperinflation. Greedy scalpers charge stupid amounts of money for items that are not worth it, even if demand is super high. It is an artificial unsustainable value of the product. A few people make out like bandits the rest are just screwed.

The market isn't always a good way to value products. Artificial values cause bubbles that will eventually burst. And in some historical cases when those bubbles burst it takes the entire economy down with it. If the government does not step in some situations an entire industry can die or worse.

 

[poweRob]

... when the cost of labor begins to outpace the economic value that of labor, labor substitution can become economically viable:

Dunkin' Opens First 'Digital-Only' Restaurant In Boston

A new kind of Dunkin' has just opened in Boston.

boston.cbslocal.com

McDonald's pay their employees for shit yet I see their cashiers getting replaced by kiosk all over the place.