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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (859126)5/21/2015 7:30:46 PM
From: combjelly  Read Replies (2) of 1576007
 
Really? How does that work? I mean, labor is a cost of doing business. If you run a hamburger joint and the price of beef goes up, do you stop selling hamburgers?

You and i-node assume that labor is elastic. If the price goes up, you reduce the amount you use. While there is some elasticity, there are limits. You still need X amount to cover Y amount of work. I suppose you can turn away business, but most businesses don't stay in operation if they turn away too much.

Since everyone is in the same boat, it isn't like raising prices is going to put you at a disadvantage vis a vis your competitors. So you raise prices and maybe take a little less profit for a little while. Just like what happens when the price of beef goes up. This is the sort of things that happens in the real world as opposed to the strictly theoretical one you love so much. Because there has been study after study that shows raising minimum wage as having little or no effect on employment. Granted, there are older, less well-controlled studies which do show an effect, but they had procedural flaws.

Theory is all well and good if it reflects what is happening in the real world. Theory that run counter to reality might be fun, but...
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