(June 24, 2015 at 9:25 am)FatAndFaithless Wrote: I know almost nothing about economics besides some extremely basic themes, but isn't the conservative argument not that some companies can pay higher wages, but that if every company was mandated to pay the same wages as Ikea (a massive corporation) then it would/might hurt smaller businesses and those employees?
On the surface this seems like a valid point.
Depending on the company, you will have different results. However in general, we are talking about companies both large and small that have kept wages below the Consumer Price Index. Meaning that they are in no way sharing their profits proportionate to wages.
Labor cost's do not cause inflation as one would think. Supply and demand drive inflation. Inflation is measured by CPI so as profits rise so should wages proportionately. Nobody is asking these companies to go out of business, rather we are saying they need to catch up to reality and if that means restructuring their business model so be it, it has been long overdue if this is the case.
