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Comments (Continued)

  • 7 months ago
  • 1 point

That's why you need a progressive candidate like Bernie Sanders

Those progressives will bankrupt our economy. The amount of money in someone's hand and the spending power of that money are not necessarily related. Increasing wages at the cost of business investment will likely lead to substantial inflation.

That money has to come from somewhere and businesses have an entirely new middle class to sell their products to in China and other recently quickly deceloping nations. If the US tries to chokehold business, many will leave.

  • 7 months ago
  • 1 point

Raising the Federal minimum wage will allow millions of Americans to buy more products & services from companies all across the country. This is the key aspect people seem to forget when they only focus on companies paying their staff more.

With millions of consumers actually able to afford to buy more products & services, the huge increase in production to meet this extra new demand will be a massive boost to the economy raising tax revenues and creating new jobs.

Rising wages are a sign of a successful economy, you only have to look around the world to see it's no coincidence that the poorest nations have the lowest wages, whilst the wealthiest nations offer much higher remuneration to their citizens.

Stagnating wages, over time essentially will turn any rich country into a poor one. Successful nations take the opposite approach as we can clearly see in action with countries like China, where rising wages are helping to change a once very poor nation into a wealthy one. You even alluded to China's growing middle class, certainly nobody could attribute this to being a product of wage stagnation.

  • 7 months ago
  • 1 point

Raising the Federal minimum wage will allow millions of Americans to buy more products & services from companies all across the country.

I don't think that it will. Because raising the cost of producing goods and services will inevitably and nearly immediately increase the cost of said goods and services. If a company has to pay X% more to produce their goods they are going to have to recoup that money from somewhere. And, that recoupment will come in the form of higher costs. A company just taking the hit will entail pulling money from other areas whether that be R&D, quality of goods, shareholder dividends, etc. And, each and every one of these areas being burdened will harm that company. Do this to enough companies all at once and you have the potential to severely harm the economy at large.

With millions of consumers actually able to afford to buy more products & services, the huge increase in production to meet this extra new demand will be a massive boost to the economy raising tax revenues and creating new jobs.

I just don't see that as a likely outcome. As I have pointed out, costs of those goods and services will increase, negating the increased buying power that would supposedly be gained.

Rising wages are a sign of a successful economy

Organically rising wages, not artificially rising wages.

You even alluded to China's growing middle class, certainly nobody could attribute this to being a product of wage stagnation.

You're right. It's a product of a long successful national economy coupled with lax business and economic laws which also benefits from a concerted shift from a production based economy to a more service-based one, as all developing nations eventually do.

  • 7 months ago
  • 1 point

But traditionally, we haven't seen the cost of products increase by the same levels of rising labor costs. What we have seen instead is companies become more efficient and innovative. When Bernie Sanders got Jeff Bezos to raise wages for Amazon workers we didn't see any accompanying price rises.

The other impact of paying staff better wages is that companies don't just seek to create more profitable products, they create higher quality products. You just have to look around the world at countries with both low wages and those paying relatively higher wages to see this in action. It's also replicated in stores, where upmarket high class stores who pay their staff higher salaries also sell higher quality more expensive products.

What this essentially boils down to is the difference between the type of services and industries being provided in rich countries and those of poor countries and choosing which route you prefer your country to adopt.

Do you want a low waged economy that can produce low quality products at the same cost as some of the poorest countries in the world, if you go down this route you clearly can't afford to pay your workers very much, but equally you will be able to raise next to nothing from them in taxes, as they simply wouldn't have the income to pay higher taxes. This will effectively turn your entire nation into a poor country where the people can't afford to buy anything, yet neither can the government afford to pay for anything.

If however, you adopt the route of rich countries around the world, this means you produce higher quality products that are more expensive, but also more desirable and last longer. It means actually having ordinary people earning high enough wages to be able to afford to buy higher quality products. But this means people have more money to pay taxes, that government can afford to invest back into infrastructure and new technologies. It also means rising living standards, less crime, people who have more self respect, that want to invest in their own future and to help build the country.

There is an extremely simple economic principle demonstrated time and again right across the globe, ordinary people having more money to spend creates economic growth with countries getting richer.

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