[treesrule]

There is some evidence that increasing minimum wage increases the prices of goods for minimum wage workers so that their rising wages don't actually give them more buying power, also we can just not make it illegal to build new housing in places where there is already housing but ymmv.

[nobody9999]

>There is some evidence that increasing minimum wage increases the prices of goods for minimum wage workers so that their rising wages don't actually give them more buying power

I've heard this before, but I've never actually seen that "evidence." Can you point me in the right direction?

[treesrule]

https://marginalrevolution.com/marginalrevolution/2021/08/th...

This isn't exactly what i've claimed but its in the ballpark (sorry at work will try later to try and find something more specific)

[AlotOfReading]

I don't see how it can be true that rising wages results in no net gain if vendors aren't increasing costs disproportionally to their inputs. A simple model of product cost is labor costs + "other things" like materials, retail overhead, etc, multiplied by some profit margin. If worker wages double, only the labor costs have doubled. The non-zero "other things" have not doubled (they may increase, but you can apply this argument recursively until you get to the base case), so the ultimate price cannot have increased by the same proportion. Thus, all workers should have a net gain.

[treesrule]

one way this can hold everyones wages have increased so other inputs can also increase

[AlotOfReading]

Yes, I mentioned that already. The argument applies recursively, and the total increase is always less than the wage increase as long as there is some cost somewhere in the supply chain that is not responsive to wage increase. This could be land, or raw materials cost, or fixed tariffs, or fuel costs, compute, infrastructure, doesn't matter. The whole thing is a linear function, so doubling is the max increase that can occur, and any costs that don't respond must lower the ultimate increase.

[treesrule]

All of those things as far as I can tell can rise with wage increases as they will get more use? Except for Fixed Tariffs

[111111IIIIIII]

If true then capitalism is fundamentally unjust and must be replaced.

[treesrule]

IDK that this is a new argument? LMK though if you want a more full response

[111111IIIIIII]

Who said it's a new argument? My point holds regardless of how true or new the argument is.

[kneebonian]

Exactly we must have a workers revolution, where the buregious is overthrown and the streets run red with the blood of capitalists. Then when we have no more of those parasitic capitalists sucking out the blood of the working man we will establish a glorious dictatorship of the proletariat wherein all will care for and love one another equally, where profit will be no more and the goods and services will flow through the streets without end for every person to be able to do whatever they want.

Then not long after the organs of the state will wither away as they will no longer be needed as tools of exploitation by those who own the means of production.

Come comrade join me in this glorious future, for this time we will have REAL communism that will REALLY work, unlike all others that came before us.

[treesrule]

https://www.youtube.com/watch?v=vTKwL7eW-1Q