[gruez]

In the short term or long term? I skimmed the study and it looks like they only looked at two years? In the short term I can see it happening due to psychological effects like price stickiness, but I'm skeptical that in the long term the trend would hold. As evidence to the contrary:

>Ashenfelter says the evidence from increased food prices suggests that basically all of the "increase of labor costs gets passed right on to the customers."

https://www.npr.org/sections/money/2021/02/16/967333964/what...

[pydry]

>In the short term or long term?

Wasnt transfer from profits supposed to be impossible in both cases because of competition?

[gruez]

Are you talking about how profits shouldn't exist because of competition?

[pydry]

I'm talking about your claim that the cost of raised wages would be inevitably passed on to consumers.

I'm sure there's a good reason why employers lobby so hard to keep wages down even when it doesn't affect them in the slightest cos they can just pass the costs on...

[gruez]

>I'm sure there's a good reason why employers lobby so hard to keep wages down

Yeah, because demand also drops when prices go up. Whether that's "good for everyone else" is debatable. Fast food? Maybe. Groceries? Probably not.

[pydry]

>Yeah, because demand also drops when prices go up.

That's probably largely why they try to keep prices the same and suffer the hit to profits.