| > If they sell enough burgers at the same price and manage to cover their increased wage then that also works and doesn’t impact the customer at all. They may have already be producing those numbers but haven’t seen an increase in wage just because they’re looked down on as less deserving of compensation than people who went to college. Restaurants are highly competitive. A fast food restaurant generally has ~25% of the price as direct labor costs and ~3% of the price as profit margin. > I’m saying that increasing wages for 5 employees by a $1 doesn’t increase the cost of an individual good (burger) sold to customers by $5 so the burden to the customer to support this new paradigm is negligible, especially at the volume of food being sold. Yes the 5$ is made up somewhere but it’s spread out across multiple goods sold to multiple customers that share only small fraction of the burden for supporting that change. I don’t know how to state it more clearly than that. Oh certainly, but then the spreading out comes back in again. You pass a law that requires the average wage to increase by 10%, so the price of the average item doesn't increase by $5 (i.e. 100%), it increases by ~10%. But then it's not just the burger that goes up by 10%, it's everything (on average). Now, this result is not going to be uniform, but that's another problem in itself. For the average wage to increase by 10%, the wages of people who actually make minimum wage might have to go up by 100%, because there aren't that many of them. For them -- at least the ones who don't lose their jobs as a result -- the 10% is smaller. But the other population for which the hit is smaller is the very rich, because they spend a lower proportion of their income. The CEO who makes 1000 times minimum wage is paying the same $5 for a burger as anyone else, so the 5% increase is a 0.005% increase in spending to them. Even if they buy a fancy burger for $100, 5% of that is still only equivalent to 0.1% for the person making minimum wage. So if the hit is less to the very rich and less to the people making minimum wage (if they don't lose their jobs), where does the rest of the money come from? Oof, the middle class. They pay the higher prices and spend ~all of their income but don't get any of the money. And the goal is supposed to be to benefit the poor at the expense of the rich, not to hollow out the middle, right? |