From: Mermaid (hidden@lucifer.com)
Date: Sat Oct 25 2003 - 22:43:03 MDT
[simul]The money comes out of the profits for the owners of a business.
[Mermaid]Actually, the increase in minimum wages will be passed on to the consumer. So the price of the product increases. The profits of the owner is seldom disturbed.
Also note: when the burden of the 'minimum wage' is passed on to the consumer, the worker who supposedly benefits from this alleged protection of a 'minimum wage' finds himself with a slightly hefty pay check, but also finds himself dealing with heavy prices(higher labour costs=increase in prices of products) which makes his *real* purchasing power so miniscule that it is almost invisible. I'd say that it actually goes down!
Also note that with increasing wages(because of the supposedly increasing minimum wage rate), an increasing chunk of the labour force will also begin to pay taxes further dwindling the real green power of their wallets.
How is the picture so far?
wrt DrSebby's query to Lucifer, I can smell a game.....in fact, i am positive something like that should be out there....an acceptable net friendly version which can be played on cov can make the point crystal clear
btw...trivia...minimum wage was highest in 1968...when converted to 2003 figures by adjusting inflation, that is....query: did any war began/ended during and/or around that period? my favourite study is that of the data relating to average wage and average cost of a residential home for the period from 1900-1990. I found a gift shop which sold 'back in 19...etc...it went from 1900 to 1990...it was fascinating..if you can obtain the data, look for changes in costs/wages during key periods like the 1929 depression, world wars, vietnam war, kennedy era, nixon drama, 80s recession, early 90s....of course, this has nothing to do with this minimum wage discussion...just an interesting exercise...
back to the topic....there have been proposals..in theory at least..that minimum wage workers be given a 'tax subsidy' instead of increase in minimum wage rate itself...i dont know of one single govt which has implemented this despite the sensibility of the idea...any new information on this appreciated..
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