by William Thornton » Mon Aug 12, 2013 7:00 pm
Sandy describes why a raise in the minimum wage would be a bad decision. Why try and incentivise a $7.25 worker when gummit, by divine fiat, declares a minimum of $10 or more? If the minimum was $10 then just to get workers motivated, pay would be increased to $12+ hourly. And, really, guys, there's no pricing consequence for raising wages? Depends. If it costs more to make the Big Mac, then (a) prices must be increased as well, or (b) a more efficient way to make the burg must be found to keep unit costs down. If competition is such that prices cannot be raised, folks flood the taco stands and eschew burgers for example, then profit margins may drop such that restaurants are closed and jobs are lost. If prices can be raised then folks may eat less burgs, jobs are lost here as well. Or perhaps the favorite alternative for my socialist/fascist (in a classic sense) friends would be that the greedy capitalist pig's profits would suffer. But then, it isn't the gummit making Big Macs for social betterment by taking money from citizens by force and using them to make Macs, it is private citizens who have the incentive of making money, and shareholders who wish a return on their investment.
There's no such thing as a free lunch. Someone pays. The problem is that my socialist friends believe that lunches are free, food stamps, free Obamaphones, health care...
...and the captialist pigs pay for it.
And Sandy, you wish to go back to state churches? You find a good communal church in PA, jine it, and tell us how it goes.
My stray thoughts on SBC stuff may be found at my blog,