It may push aggregate demand toward full employment, which is the main reason for the government raising wages, or it may result in some unforeseen externalities that would hurt the economy more than help. we'll see!
Exactly. Gotta get their hur did and their nails all purdy. It actually does help the economy if you take a realistic approach and see it this way..
MAV, go to a library and read about a guy that was against all unions and workers rights but still said: give the workers a pay increase so i can sell a new car to them. Gee, what kind of a lousy capitalist would think like that? Not even going to tell his name. Everyone knows the name. ..
Hey the minimum wage got raised X%! Hurah! Victory of the workers! So then everyone in the economy demands that they get a raise of X% to maintain their ratio above minimum wage (especially those who now make the new minimum wage). So then everyone goes to the store to buy goods marked up X%. Uh oh, we're still not at a living wage! Capitalism must be broken...
LOL. Fast food is where this wage increase will really count. And I do not see McDonalds making excuses. This is just A&F finding a scapegoat.
I have nothing wrong with higher wages if those higher wages are earned, not given out arbitrarily. If A&F raises their wages and lays off 20% of the girls that are working there, I fail to see how that is going to help them. BTW, when you look at the true wages and benefits of these girls that work at A&F, i.e wages and discounts earned on clothing there, they make faaaaar more then minimum wage. Ooops, we are not suppose to talk about that.
Oh.. poor CEO... only will take home $23 million instead of $29 million.... poor baby oh.. wait.. I forgot... they will just past the cost along to their customers.... god forbid the top brass cant make extra insane $$, and would have to settle for just insane $$ :eek: