RE: The Law of Unintended Consequences Will Kick You In The Balls Every Time
March 11, 2017 at 1:09 pm
(This post was last modified: March 11, 2017 at 1:11 pm by Anomalocaris.)
(March 11, 2017 at 12:34 pm)Chad32 Wrote:(March 11, 2017 at 12:31 pm)johan Wrote: Its always heartwarming to read these threads where people with no background in economics nor any experience running a business and keeping profitable have all the solutions to economic problems. And its amazing how often those solutions seem to involve some form of just pay your employees more and problem solved.
More pay means more customers, and more customers means more income without having to jack up the prices much. Right? I know I'd be buying more stuff if I had a bigger budget.
no, those whom you paid more, have more spending power and can efford to spend more and become the more customers. But the total pot of goods and services in the economy hasn't changed. So if those paid more buys more, others per force can by less with their existing pay. So paying American more to do jobs where they are no more productive then Mexican illegals is a perverse wealth transfer that incentivized those Americans who vote, but whose expectations exceed their deserts, to not work harder to increase their deserts, but instead wrap themselves with flags and bedsheets and conical hats with eye holes to demonize immigrants, and minorities in the bargain.
