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View Diary: What this toaster oven says about the minumum wage. (147 comments)

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  •  A) You could never pass it through Congress (11+ / 0-)

    and B) any minimum wage increases are going to happen with far less knee-jerk price raises by companies if you step them up gradually.  

    They'll still gnash their teeth and wail loudly about how they'll have to lay off people, but personnel is dictated by demand, not cost of goods sold.  It takes X number of people to sell Y pizzas a day, and if you have fewer than X people, you'll end up turning away business, which businesses hate to do.

    So they'll jack the prices up enough to break even again, and people will buy just as many or even more pizzas now that they're making more.

    Based on historical data, what we should be shooting for is the $15-$20 minimum wage rage if we simply want to return to the purchasing power of past minimum wages or just a bit higher, but again, it would need to be phased in slowly to let businesses adjust.  Maybe 75 cents to a buck increase a year til we hit target, then stay tied to inflation.  We'll still need to adjust upwards in the future, of course, because the 'inflation' numbers never actually reflect reality, since they exclude several of the things that increase faster than 'average', but everybody still needs.

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