I have yet to hear of a business in which 100% of the cost to the consumer is labour. Materials, equipment, rent, profit margins, etc. all mitigate the impact of labour going up.
Not necessarily. If your labour is 25% of the cost of a product and it increases by 4%, the price of the product would go up 1% without affecting the profit at all (in dollars, not percentage).
It’s better to let the free market determine wages. Wages are affected by the law of supply and demand. If a certain job is in high demand, the wage will go up. The government forcing wages up is artificially increasing demand.
I have yet to hear of a business in which 100% of the cost to the consumer is labour. Materials, equipment, rent, profit margins, etc. all mitigate the impact of labour going up.
Yes, but unless these other costs are going down, increasing wages will lessen profits.
Not necessarily. If your labour is 25% of the cost of a product and it increases by 4%, the price of the product would go up 1% without affecting the profit at all (in dollars, not percentage).
It’s better to let the free market determine wages. Wages are affected by the law of supply and demand. If a certain job is in high demand, the wage will go up. The government forcing wages up is artificially increasing demand.