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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (323090)	1/26/2007 3:53:14 PM
From: TimF	Read Replies (1) \| Respond to of 1578178

They might be able to raise prices. If so that is itself a cost, your still not getting something for nothing. Higher prices cost consumers, and the employees your trying to help are consumers. To the extent the cost get taken care of by higher prices, you are taking back at least part of what your giving the employees. Only part rather then all because the costs aren't uniformly raised for the whole states economy, and they aren't raised (or not raised as much) for goods from other parts of the state, from other states or other countries. But the fact the the other prices aren't pushed up, would mean that the local producers where at a competitive disadvantage. As for lower profit margin (and lower total profits), that might happen, in fact to an extent it probably will. But its unlikely to cover 100% of the cost. OTOH lower profits and margins tend to reduce future growth. You get lower expected return on investment (so less incentive to invest). And to the extent that the investment can be relocated without a large increase of costs (or loss of customers or other problems) you provide an incentive to invest elsewhere.