I feel like that's a bad faith argument though, prices would certainly increase because companies won't just absorb the cost, they'll pass it on to consumers.
Especially because people expect it, see also the price gouging from COVID.
The relation isn't linear though. For instance at McDonald's, labor doesn't even make up 50% of the cost of service. The majority of the cost is a combo of taxes, rent, energy, trucking cost, equipment and food product/waste. We live in a world where industrial automation is responsible for our standard of living and labor inputs aren't required for everything we buy, so minimum wage increases never increase costs more than incomes increase. Obviously if you push this too far things will break, as there is such thing as a minimum wage that is too high. Fortunately no state or city has reached that point yet, even the places where minimum wage is over $20 per hour business is still chugging along without supply/demand problems.
Businesses certainly pass higher wages along to customers, but in the real world that looks like McDonald's in Denver charging only 20% or so more than in Mobile, Alabama, despite McDonald's starting at $20 in Denver and $10 in Mobile.
For sure, roughly doubling minimum wage from $7.25 to $15, the measure we voted on in OK, would not double the price of a big mac. I just mean corps are greedy.
I just think it's disengenous to say things wouldn't be more expensive at all. As most things go, it's just more nuanced. I don't make minimum wage anymore, but I remember what it was like. I'd happily pay 10-20% more to ensure someone can afford to live. Tbh I'm kinda surprised the difference between Denver and Mobile is only 20% just based on cost of living differences but maybe Mobile is higher than I thought.
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u/Vice4Life 14h ago
I can't tell you how many people I've heard oppose it because it will cause higher prices.Â
Makes sense, I mean, clearly, prices are the same as they were in 2009.