[jellicle]

There's no evidence for that. Aren't we told repeatedly that companies will simply pass cost increases on to their customers? Can't have it both ways. Is it really the case that a ship full of millionaires can't charge enough to pay people $7.25/hour?

[icebraining]

You misunderstood my point. I didn't saying that they'd go bankrupt, I said they "will just stop hiring foreign workers", the keyword being foreign.

If you force them to pay a decent wage, then the workers from developing countries will lose their competitive advantage, losing the jobs to local workers. This means the money remains concentrated in developed countries, instead of raising the wages in developing countries (as it's been happening in e.g. China).

[twoodfin]

Which "millionaire-class" cruise lines are paying such low rates? I thought we were discussing Carnival, Royal Caribbean and such.

Regardless, demand for cruises is not extremely elastic. Make them more expensive and there will be fewer of them as people make alternative vacation plans. Thus fewer opportunities for poor workers. Not to mention, those workers' competitive advantage is their willingness to work for the lower rates. Take that away, and the lines will start hiring closer to home.

[jacalata]

Companies will pass required cost increased like a higher sales tax on to their customers (in general, I'm sure there are some exceptions). However it is obvious that they sometimes simply avoid paying a cost increase if possible - if it were not the case, you would never hear of a cost cutting measure implemented by a business.

[deelowe]

Millionaires on royal caribbean? What are you talking about?