JavaScript is required to use Bungie.net

OffTopic

Surf a Flood of random discussion.
9/26/2013 2:43:05 AM
25

California Raises Minimum Wage

http://www.mercurynews.com/politics-government/ci_24083554/california-legislature-poised-raise-minimum-wage-from-8 (I'm not sure if this is a completely accurate or un-biased source, just putting that out there) I'm not trying to start a political flamewar, but it's big news here in CA. I personally think it's a turn for the better. Thoughts?

Posting in language:

 

Play nice. Take a minute to review our Code of Conduct before submitting your post. Cancel Edit Create Fireteam Post

View Entire Topic
  • As stated, any economist will tell you that producers look for a specific profit margin and when you increase fixed costs they are going to pass those costs on to consumers. Opportunity cost applies - if that price rise heavily affects demand for a good/service then the producer will cut back or move to a different industry. That being said, very few industries are affected by minimum wage increases other than food service and retail. Competition endures the same increase. Will consumers pay more for items like fast food and clothing? Yes. Will the cost be unbearable? No. I doubt Californians will notice their Big Mac costing $4.58 instead of $4.20. Will people lose jobs? Very few. The market will set a natural minimum wage on its own, which is not much higher than the new minimum in most cases. While this distorts free markets it doesn't do so heavily. Keep in mind it doesn't reach $10/hr until 2016.

    Posting in language:

     

    Play nice. Take a minute to review our Code of Conduct before submitting your post. Cancel Edit Create Fireteam Post

    1 Reply
    You are not allowed to view this content.
    ;
    preload icon
    preload icon
    preload icon