Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Wharf Rat who wrote (886203)	9/9/2015 9:43:40 AM
From: TimF	1 Recommendation Read Replies (2) of 1576791

If you raise the cost of employing people, it puts downward pressure on wages and/or employment. To the extent it can be, and is, passed along to the customer it contributes to increased prices and/or lower demand. Business owners and managers will resist having it hit profits (again they aren't altruists) but to the extent it does it will put downward pressure on investment which over time will be negative for growth and employment. In this case the most likely result seems to be that effectively employees exchange less wage growth for benefits. Not only does that make sense looked at in isolation, but its also a continuation of the actual trend in recent decades. To the extent it doesn't happen you just push the problem off somewhere else, it isn't a free lunch.

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